XRP is facing growing downside pressure as on-chain data signals a potential breakdown below the crucial $2 psychological threshold.
The token has seen bearish sentiment in line with broader cryptocurrency market trends.
According to insights from crypto analyst Ali Martinez, if bulls fail to defend current support levels, XRP could retrace significantly amid weakening momentum.
In an X post on November 29, Martinez based his outlook on the latest UTXO Realized Price Distribution (URPD) data from Glassnode, which shows that XRP is now trading in a zone with thinning buyer support, increasing the risk of a deeper pullback.
The data highlighted a dense concentration of previously realized prices around the $2.15 region, a level XRP recently slipped below, suggesting many traders may now be sitting on unrealized losses that could accelerate selling.
If XRP continues to struggle beneath $2.15, the next major support zones identified by on-chain signals sit at $1.91 and $1.73. These areas reflect strong historical activity and could act as stabilizing levels if downward pressure intensifies.
Long term investors signal more XRP collapse
Another concerning factor for XRP is the behavior of long-term holders. Data shared by Martinez suggested a significant shift in sentiment among this cohort.
Metrics from Glassnode’s Long-Term Holder Net Unrealized Profit/Loss (NUPL) indicate a transition from earlier phases of euphoria and denial to rising anxiety as the market price approaches the critical $2 threshold.
Throughout 2025, long-term holders have mirrored overall market volatility, with sentiment rising and falling alongside price swings. The latest downturn, however, points to weakening confidence among investors typically viewed as XRP’s most stable base.
A drop below $2 would deepen this anxiety phase and signal a broader reassessment of XRP’s long-term value.
While NUPL doesn’t forecast price movements, its psychological framing helps explain investor behavior. The current shift underscores growing pressure on XRP as the market waits for clearer direction.
XRP price analysis
By press time, XRP was trading at $2.15, down about 1.6% in the past 24 hours and roughly 11% on the week.
XRP also hovers below its 50-day SMA at $2.55 and 200-day SMA at $2.60, signaling short-term weakness as the asset remains under key moving averages that now act as dynamic resistance.
This setup suggests ongoing downward pressure, with the price needing to reclaim the 50-day SMA to hint at a bullish reversal.
Meanwhile, the 14-day RSI at 38.73 remains in neutral territory, neither oversold (below 30) nor overbought (above 70), indicating stabilized momentum without signs of immediate exhaustion.
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