XRP Faces $2.3 Resistance Despite Signs of Accumulation

• XRP shows signs of accumulation, with lower exchange reserves and rising utility.
• Price remains below the $2.3 resistance, as bearish signals limit breakout chances.

Ripple Labs’ linked-coin XRP has shown signs of growing investor interest in recent weeks. However, the coin continues to face a major resistance level near $2.3. Despite stronger buyer activity and reduced exchange supply, its price has struggled to break out of a persistent range, raising questions about the strength behind the current accumulation trend.

Accumulation Grows but Bearish Structure Holds Firm

In an earlier update, we noted that XRP has faced selling pressure since early June. On May 30, a death cross formed on the four-hour chart as the 50-day SMA crossed below the 200-day, signaling potential for further downside.

Recent XRP news shows that the coin is seeing capital outflows from exchanges. Per historical trends, this pattern is often connected to accumulation by investors choosing to hold rather than sell. 

However, the pace of these outflows slowed in June compared to May, showing a more cautious mood among market participants. Additionally, the Network Value to Transactions (NVT) ratio has declined, which could indicate a rise in network utility. 

This analysis often suggests that the coin may be undervalued compared to its actual activity, giving some hope for a potential upside. Still, analysts caution that accumulation alone may not trigger a breakout, especially as XRP’s price action remains stuck in a bearish swing structure.

The Relative Strength Index (RSI) on the daily chart has lingered below the neutral 50 level for weeks. At the time of writing, it has barely pushed above that threshold to 50.8, hinting at an early sign of positive momentum. However, the broader trend still lacks strong bullish confirmation.

As highlighted in our previous news article, XRP trading volume rose 27% after US-China talks hinted at tariff relief. This could also create positive momentum that could push the coin above the resistance.

Beyond the price outlook, Ripple launched a new grant program tied to the XRP Ledger for promising early-stage Web3 startups in Japan. As mentioned in our news brief, this initiative aims to boost blockchain innovation in Asia.

Range-Bound Price Action Clouds Short-Term Outlook

It is worth noting that spot buyers have been dominant according to the 3-month Cumulative Volume Delta (CVD). The fourth-largest cryptocurrency, XRP, remains range-bound. It recently faced rejection at $2.6 and has since moved sideways. 

The mid-range resistance near $2.28 aligns with the 38.2% Fibonacci retracement level from the recent drop between $3.4 and $1.61, creating another hurdle. Meanwhile, On-Balance Volume (OBV) data showed no higher highs since March, although it has formed higher lows in the past two months.

Traders are also watching the $2.29 to $2.36 range, where a concentration of liquidity levels has formed. A push into this region seems possible, but if profit-taking intensifies, it could be followed by a reversal.

The current structure suggests that buyers are not wholly controlled while they are present. A rally to $2.36 may happen soon, but a strong breakout above that level will likely require more conviction than is currently visible in the charts. As of now, the coin is trading at $2.27, up 4.4% in the past 24 hours.

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