On July 3rd, XRP bulls attempted to break through the $2.3 resistance level but were unsuccessful. Technical analysis shows that this level is close to the midpoint resistance at $2.27.
Since March, this altcoin has been trading within this range. On-chain metric analysis shows that over 1 billion XRP tokens have been moved off exchanges. This is a strong catalyst indicating that the market is accumulating, potentially driving the next rebound.
Legally, Ripple's predicament continues as it finds itself embroiled in legal disputes with Linqto, the U.S. Securities and Exchange Commission (SEC), and the Department of Justice (DoJ).
This development does not help XRP's breakout.
XRP resistance levels are above, but will they be overcome?
The weekly chart shows that XRP's overall volatility structure remains bullish. Following a strong rebound in November, the asset set a higher low of $1.61.
However, the market's internal structure has turned bearish. Since March, the $2.60 resistance level has repeatedly rejected bullish attempts.
Another important observation is the continuous decline in trading volume since February.
The 20-week moving average volume has been trending downwards, indicating that XRP is currently in a consolidation phase on higher time frames.
The daily chart highlights the importance of the supply zone between $2.27 and $2.32, which has been a major resistance level throughout June. So far, bulls have struggled to break through this level.
As of this writing, the On-Balance Volume (OBV) for June is trending downwards, indicating weakening demand. However, there has been a slight rebound in demand over the past week.
Meanwhile, the Relative Strength Index (RSI) has climbed above the neutral 50 mark, indicating that bullish momentum is beginning to strengthen.
From a technical perspective, if XRP successfully retests $2.32 as a support level, swing traders may consider going long.
Despite improvements in price action, the decline in trading activity suggests that retail investor interest is waning.
The network value to transaction (NVT) ratio also indicates low on-chain activity, exacerbating concerns about low network usage.
