Market sentiment volatility envelops XRP: Is the decisive moment here?

Since the end of May, the price performance of XRP has been quite lackluster, as this coin continues to fluctuate within a narrow zone, lacking a clear breakout.

Currently, XRP is facing strong resistance around the $2.33 level, while being supported at the $2.08 mark — a structure that indicates the market is falling into a state of consolidation, with no clear trend. Lacking breakout signals or drastic adjustments, XRP is entering an accumulation phase, with both upward and downward momentum being faint.

Market sentiment divided as XRP price moves sideways

On-chain data is clearly showing the psychological tug-of-war within the XRP investor community, as the price of this token continues to remain trapped in a narrow trading zone, reflecting a widespread state of indecisiveness. According to statistics from Glassnode, the Unrealized Profit/Loss indicator (NUPL) shows that market sentiment over the past month has been oscillating between two opposing emotional extremes: from 'Optimistic' to 'Anxious' – and vice versa.

The Unrealized Profit/Loss Indicator (NUPL) of XRP | Source: GlassnodeThis development indicates a clear division within the market: a portion of traders remains cautiously optimistic about the upward trend, while the rest begins to doubt the short-term prospects of XRP.

Essentially, NUPL measures the difference between the current price and the average price when the coins were last moved – thereby indicating whether investors are in a profit or loss state, and to what degree. When this indicator fluctuates within a neutral zone, market sentiment often falls into a state of indecision: there are days dominated by optimism, but there are also many instances when concerns resurface.

This kind of consolidation pattern is often a sign of a market in a state of uncertainty – where price action is highly volatile, but there is no clear momentum to establish a new trend.

In addition, the Average True Range indicator (ATR) of XRP is clearly declining, further reinforcing the view that the current market lacks clear direction. As of the time of writing, the ATR index is only at 0.051.

The ATR indicator of XRP | Source: TradingViewIn essence, ATR is a technical tool used to measure the price volatility over a certain period of time. When this index declines, it usually reflects that the price fluctuation range is narrowing — a signal that market momentum is gradually weakening and investor sentiment is becoming more cautious.

XRP is waiting for a new breakout as the price is compressed between key levels.

Market sentiment fluctuates along with the increasingly narrowing volatility, reinforcing the scenario of a clear accumulation phase. In the context of a lack of new catalysts, XRP is likely to remain constrained within the current price zone until a factor sufficient to change the situation emerges.

XRP/USDT daily chart | Source: TradingViewIn the case of increased buying pressure, this coin may breakout from the resistance level of $2.33, opening up opportunities to reach the next target at $2.45.

On the contrary, if selling pressure prevails, the price of XRP could completely break through the support zone of $2.08 and retreat to the zone of $1.96, re-testing the short-term bottom.

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