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XRP is having a hard time recovering as its price action continues to mimic Bitcoin’s weakness. The altcoin has failed to create momentum in recent days, pushing towards the critical threshold of $2.00.
This correlation-driven pullback is preventing XRP from recovering key levels, raising concerns among holders.
The losses of XRP investors are increasing
The Net Unrealized Profit / Loss (NUPL) indicator shows an increase Click on XRP. NUPL recently fell from a minor bearish zone to below 0.25, entering the fear zone for the first time in over a year. This suggests that the unrealized interest has eroded significantly, leaving many holders at or near losses.
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This decrease in emotions can also act as a trigger for reversion. Historically, NUPL’s fall in fear precedes periods of consolidation, where prices reach psychologically attractive levels. If investors interpret the current conditions as oversold areas, XRP could benefit from renewed interest from buyers.
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XRP certifies Even big changes in the overall market. The Momentum Stress indicator shows a tightening pressure that has been building for almost a month. A squeeze reflects a period of low volatility as pressures build in the price structure, often leading to a strong directional explosion once released.
Currently, the indicator indicates a possible trend towards an upward momentum. If the upward squeeze resolves, XRP could see a sharp expansion in volatility, giving the asset the support it needs to escape its recent slump.
The price of XRP should escape
Ripple is trading at $2.06 after two failed attempts to break the $2.20 resistance this week. The cryptocurrency is now moving towards the $2.02 support level, which was previously a strong reversal point.
If Ripple sees renewed investor confidence and rises from $2.02, the price could rise again to $2.20. A successful break above this resistance could open the door to $2.26, supported by the potential increase in volatility indicated by the squeeze.
However, risks of collapse remain. Losing the $2.02 support will put $2.00 in immediate danger. Fall below this threshold Ripple can pay Towards $1.94 or even $1.85, which invalidates the bullish outlook and indicates the possibility of a deeper correction.
