XRP struggles to recover as its price movements continue to mirror Bitcoin's weakness. The altcoin has failed to establish a trend in recent days, bringing it closer to the critical $2.00 threshold.
This correlation-driven decline has kept XRP away from key levels, raising concerns among holders.
XRP private investors' losses are growing
Net Unrealized Profit/Loss (NUPL) indicator highlights increasing pressure on XRP. NUPL recently fell slightly from a bearish territory below 0.25, moving into the Fear zone for the first time in over a year. This signal indicates that unrealized profits have significantly diminished, leaving many holders in a losing or near-losing situation.
A dip in sentiment can also act as a trigger for a reversal. Historically, a drop in NUPL to a massive fear zone has preceded accumulation phases when prices reach psychologically attractive levels. If investors interpret the current conditions as overbought, XRP could benefit from renewed buying interest.
Do you want more token information? Join chief editor Harsh Notariya’s Daily Crypto Newsletter subscriber here.
XRP is also witnessing significant macroeconomic changes. The Squeeze Momentum Indicator shows a tightening squeeze that has been developing for nearly a month. The squeeze reflects a low volatility period as pressure builds in the price structure, which often leads to a strong directional change upon its release.
Currently, the indicator points to a potential bullish sentiment. If the squeeze breaks upwards, XRP may experience a significant increase in volatility, providing the asset with the necessary boost to escape its recent stagnation.
XRP's quote is $2.06, following two unsuccessful attempts to break the $2.20 resistance this week. The altcoin is now sliding towards the familiar $2.02 support level, which has previously acted as a strong reversal point.
If XRP regains investor confidence and recovers from $2.02, the price could rise back to $2.20. A successful breakthrough above this resistance could open the door to $2.26, reinforced by potential volatility growth due to the squeeze.
However, the decline remains a risk. Losing the $2.02 support would put $2.00 at immediate risk. A drop below this threshold could push XRP towards $1.94 or even $1.85, which would nullify the bullish outlook and suggest a deeper correction possibility.
