Decoding the resistance level of XRP – Can it surpass $2.3?

The XRP bulls failed to break the resistance zone of $2.3 on July 3. Technical Analysis shows that this level is close to the midpoint resistance around $2.27.

Altcoin has been trading in this zone since March. Analyzing the on-chain data shows that over 1 billion XRP has been moved off exchanges. This is a strong catalyst signaling accumulation and could drive the next price increase.

Legally, Ripple's troubles continue, embroiled in another legal battle with Linqto, the Securities and Exchange (SEC) and the Department of Justice (DoJ).

This development does not help the breakout opportunity of XRP.

Resistance ahead, can XRP break through?

Source: TradingViewThe weekly chart shows that the overall structure of XRP is still in a bullish zone. After a strong increase in November 2024, this asset has established a higher low around $1.61.

However, the internal structure of the market has shifted to a bearish trend. The resistance zone $2.60 has consistently rejected growth attempts since March.

In addition, XRP has recorded a steady decline in trading volume since February.

The 20-week moving average of trading volume has shown a downward trend, indicating that XRP is currently in a consolidation phase on the higher time frame.

Source: TradingViewThe daily chart highlights the significance of the supply zone $2.27 – $2.32, acting as the main resistance level throughout June. So far, the bulls have struggled to break through this level.

At the current time, the On-Balance Volume (OBV) indicator is trending down in June, signaling weakness. However, demand has increased slightly over the past week.

Meanwhile, the (Relative Strength Index) has risen above the neutral level of 50, indicating that bullish momentum is beginning to form.

Technically, traders may consider buying in if XRP successfully tests the $2.32 level as support.

Although prices have improved, the decline in trading activity indicates that interest from retail investors is gradually diminishing.

The NVT ratio also shows low on-chain activity, further reinforcing concerns that network usage is declining.

Vincent