$XRP Faces a Critical Price Test as Volatility Tightens

XRP is showing signs of weakness again as the price continues to follow Bitcoin’s recent downturn. The altcoin has been unable to build momentum over the past few days, bringing it closer to the important $2.00 support area.

One major concern is the shift in investor sentiment. The NUPL (Net Unrealized Profit/Loss) indicator has slipped into the Fear zone for the first time in over a year, meaning most holders have lost a large portion of their unrealized profits. Historically, however, this zone often leads to accumulation when traders start viewing the asset as undervalued.

Another key development is the ongoing volatility squeeze. The Squeeze Momentum Indicator has been tightening for almost a month, usually signaling that a major move is forming. At the moment, the indicator is slightly leaning toward bullish momentum, suggesting that an upside breakout could follow if buying pressure appears.

XRP is currently trading around $2.06 after two failed attempts to push above $2.20. The price is now moving back toward the familiar $2.02 support level. If buyers defend this area again, XRP could rebound toward $2.20 and potentially $2.26.

But the downside risk is still present. A clear breakdown below $2.02 would put $2.00 at immediate risk. Falling under this threshold could drag XRP toward $1.94 or even $1.85, which would weaken the bullish structure and suggest a deeper correction is underway.

📌 If you want more updates like this, just drop a “XRP” or “More” in the comments.