XRP is struggling to recover as its price action continues to mirror Bitcoin’s weakness. The altcoin has failed to establish momentum over the last few days, pushing it closer to the critical $2.00 threshold.
This correlation-driven decline has kept XRP from reclaiming key levels, raising concern among holders.
XRP Investors’ Losses Rise
The Net Unrealized Profit/Loss (NUPL) indicator highlights the growing pressure on XRP. NUPL recently slipped from the mildly bearish zone to below 0.25, entering the Fear zone for the first time in over a year. This signals that unrealized profits have significantly eroded, leaving many holders at or near losses.
This dip in sentiment may also act as a reversal trigger. Historically, NUPL falling into Fear has preceded periods of accumulation, as prices reach psychologically appealing levels. If investors interpret current conditions as oversold territory, XRP may benefit from renewed buy-side interest.
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XRP NUPL. Source: Glassnode
XRP is also witnessing important macro shifts. The Squeeze Momentum Indicator shows a tightening squeeze that has been developing for nearly a month. A squeeze reflects a period of low volatility as pressure builds within the price structure, often leading to a strong directional breakout once it releases.
At present, the indicator suggests a potential tilt toward bullish momentum. If the squeeze resolves upward, XRP could experience a sharp volatility expansion, giving the asset the boost it needs to escape its recent stagnation.
XRP Squeeze Momentum Indicator. Source: TradingView
XRP Price Needs To Escape
XRP is trading at $2.06 after two failed attempts to break the $2.20 resistance this week. The altcoin is now drifting toward the familiar $2.02 support level, which previously acted as a strong rebound point.
If XRP sees renewed investor confidence and a bounce from $2.02, the price could climb back to $2.20. A successful breakout above this resistance may open the door to $2.26, supported by the potential volatility surge indicated by the squeeze.
XRP Price Analysis. Source: TradingView
However, a breakdown remains a risk. Losing the $2.02 support would place $2.00 in immediate danger. A fall below that threshold could push XRP toward $1.94 or even $1.85, invalidating the bullish outlook and signaling deeper correction potential.
