- XRP saw high outflows from exchanges, a bullish sign contrasted by falling network activity and retail interest
- The increased demand for XRP over the past week and a momentum shift were early signs of bullishness
Ripple [XRP] bulls tried, and failed, to breach the $2.3 resistance zone on the 3rd of July. Technical analysis showed that this level was close to the mid-range resistance level at $2.27.
The altcoin has traded within this range since March. Analysis of on-chain metrics revealed that over 1 billion XRP tokens were moved off exchanges. It was a strong catalyst that signaled accumulation and could help drive the next rally.
On the legal front, Ripple’s woes continued, embroiled in another legal crossfire with Linqto, the Securities and Exchange Commission (SEC), and the Department of Justice (DoJ).
This development did not help XRP’s breakout chances.
XRP resistance levels are overhead, but will they be overcome?
Source: XRP/USDT on TradingView
The weekly chart showed that XRP’s overall swing structure remains bullish. Following a strong rally in November, the asset established a higher low at $1.61.
However, the internal market structure has turned bearish. The $2.60 resistance zone has consistently rejected bullish attempts since March.
Another key observation is the steady decline in trading volume since February.
The 20-week moving average of volume has been trending downward, signaling that XRP is currently in a consolidation phase on the higher timeframe.
Source: XRP/USDT on TradingView
The daily chart highlights the significance of the $2.27–$2.32 supply zone, which has served as a major resistance level throughout June. So far, the bulls have struggled to break above this level.
At the time of writing, the On-Balance Volume (OBV) trended downward during June, signaling weakening demand. However, demand has picked up slightly over the past week.
Meanwhile, the Relative Strength Index (RSI) climbed above the neutral 50 mark, suggesting that bullish momentum is starting to build.
From a technical standpoint, swing traders may consider going long if XRP successfully retests $2.32 as support.
Despite improving price action, a decline in transaction activity points to fading interest from retail investors.
The Network Value to Transactions (NVT) ratio also indicates low on-chain activity, reinforcing concerns about weak network usage.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
