XRP Market Faces Mounting Pressure Amid Rising Anxiety
The cryptocurrency landscape is currently characterized by significant volatility, as XRP encounters intensified selling pressure. This shift has been driven by escalating fears within the crypto market, propelling sentiment into one of its most delicate phases. What began as an exhilarating rally earlier this year has gradually devolved into a state of denial among long-term investors, with anxiety now taking the forefront. XRP is teetering on the brink of falling below the critical $2 mark, a level of immense psychological and structural significance. Investors are keenly observing this threshold, understanding its pivotal role in the market dynamics.
At present, XRP is managing to stay above the $2 mark, but maintaining this position is becoming increasingly challenging as liquidity diminishes and macroeconomic uncertainties grow. A breach of this crucial level could instigate a more profound market correction, whereas a successful recovery would reaffirm its status as a vital long-term demand zone.
This transformation in sentiment is also evident in on-chain metrics, as long-term holders who once enjoyed substantial profits are now witnessing a compression of their unrealized gains. Historically, transitions from euphoria to denial and eventually to anxiety have often preceded significant market turning points, underscoring the importance of the current situation.
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XRP’s NUPL Indicates Rising Market Uncertainty
Analyst Ali Martinez recently revealed data indicating that XRP’s Long-Term Holder Net Unrealized Profit/Loss (NUPL) has fallen below 0.5. This level typically signifies a shift from confidence to growing anxiety among investors. The NUPL metric evaluates the difference between the total unrealized profit and loss within the network, offering insights into investor sentiment during different phases of the market cycle. When NUPL is above 0.5, it reflects optimism and strong conviction, often associated with rising prices. However, when it drops below 0.5, sentiment weakens, signaling that investors are no longer comfortably in profit.
XRP’s dip below this threshold indicates that a significant portion of the market is losing confidence as unrealized gains diminish. Investors who previously enjoyed substantial profits are now experiencing erosion in those margins, prompting a more defensive psychological stance. Historically, this signals a transition toward anxiety—a stage where many holders begin to question the potential for future upward momentum.
This decline in NUPL coincides with XRP’s price behavior near the $2 support level, highlighting the market’s fragility. While anxiety can lead to panic selling, it has also marked the onset of long-term accumulation phases in previous market cycles. XRP’s next move may hinge on whether fear continues to escalate or whether strong hands step in to absorb the supply.
Testing Key Support as Selling Pressure Intensifies
XRP remains under significant selling pressure, with the price chart displaying a clear pattern of lower highs and consistent failures to reclaim key moving averages. Currently, XRP is trading around $2.14, testing a crucial support zone that has consistently served as a psychological and structural level for buyers throughout the year. Each attempt to surpass the 50-day and 200-day moving averages has met with rejection, indicating that momentum remains firmly in favor of the sellers.
Recently, trading volume has surged during downward movements, suggesting that the sell-offs are more driven by capitulation than mere profit-taking. The sharp decline to $1.20 in October remains a stark reminder of extreme volatility and liquidity stress. While XRP quickly rebounded from that anomaly, it underscored the fragility of the market structure. Since then, the price has struggled to establish a sustained uptrend, instead forming a more compressed consolidation beneath major moving averages.
If the $2 support level is decisively breached, XRP could revisit deeper liquidity zones around $1.75–$1.90, where buyers previously intervened in September. However, maintaining a position above $2 would keep the potential for a recovery alive, particularly if market sentiment stabilizes.
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