- XRP saw high flow from stock exchanges, a bullish sign in contrast with falling network activity and retail interest
- The increased demand for XRP in the past week and a momentum shift was early signs of bullishness
Ripple [XRP] Bulls tried and failed to break the $ 2.3 resistance zone on July 3. Technical analysis showed that this level was close to the resistance level of the middle range at $ 2.27.
The Altcoin has been traded within this reach since March. Analysis of chain statistics showed that more than 1 billion XRP tokens were moved from trade fairs. It was a strong catalyst that indicated accumulation and could help stimulate the next rally.
On a legal front, the misery of Ripple, engaged in another legal crossfire with Linqto, the Securities and Exchange Commission (SEC) and the Ministry of Justice (DOJ) remained.
This development did not help XRP’s exploits.
XRP resistance levels are overhead, but will they be overcome?
Source: XRP/USDT on TradingView
The weekly graph showed that the overall swing structure of XRP Bullish remains. After a strong rally in November, it actively established a higher layer at $ 1.61.
However, the internal market structure has become Bearish. The $ 2.60 resistance zone has consistently rejected Bullish attempts since March.
Another important observation is the steady decline in trade volume since February.
The volume of 20 weeks of progressive average is trend down, indicating that XRP is currently in a consolidation phase on the higher period of time.
Source: XRP/USDT on TradingView
The daily graph emphasizes the importance of the supply zone of $ 2.27 – $ 2.32, which served as a major resistance level in June. Until now, the bulls have difficulty breaking above this level.
At the time of writing, the On-Balance volume (OBV) went down in June, which indicates the weakening of the question. However, the question was picked up something last week.
In the meantime, the relative strength index (RSI) climbed above the neutral 50 point, suggesting that Bullish Momentum is starting to build.
From a technical point of view, swing traders can consider going for a long time if XRP can successfully re -test $ 2.32 as support.
Despite improving price action, a decrease in transaction activity points to the fading of interest rates from retail investors.
The ratio of the network value to transactions (NVT) also indicates a low activity on the chains, which strengthens concern about weak network use.
Disclaimer: The presented information does not form financial, investments, trade or other types of advice and is only the opinion of the writer