XRP Faces Resistance Despite Bullish Signals

Legal Issues Add Pressure

XRP, the digital asset associated with **Ripple**, is navigating a complex landscape. Bullish indicators are emerging, but persistent resistance levels and ongoing legal challenges create uncertainty for investors.

Technical Analysis Shows Struggle

**Ripple** bulls were unable to overcome the $2.3 resistance zone earlier this week. Technical analysis indicates that this price point is very close to the mid-range resistance level of $2.27. The altcoin has been trading within this range since March.

The weekly chart suggests that XRP’s overall swing structure remains bullish. A higher low was established at $1.61 following a strong rally in November. The internal market structure, however, has become bearish. Since March, the $2.60 resistance zone has consistently rejected bullish attempts.

Trading volume has steadily declined since February. The 20-week moving average of volume has been trending downward, suggesting that XRP is currently consolidating on a higher timeframe.

On-Chain Metrics Mixed

Analysis of on-chain metrics revealed that more than 1 billion XRP tokens were moved off exchanges. This is considered a strong sign of accumulation that could potentially drive the next rally.

The daily chart highlights the significance of the $2.27–$2.32 supply zone, which has acted as a major resistance level throughout June. Bulls have struggled to break through this level so far. While the On-Balance Volume (OBV) trended downward during June, suggesting weakening demand, it has picked up slightly over the past week. The Relative Strength Index (RSI) has climbed above the neutral 50 mark, indicating building bullish momentum.

According to CoinGecko, XRP currently has a circulating supply of 55.62 billion, and a maximum supply of 100 billion CoinGecko 2024.

Legal Challenges Persist

**Ripple’s** legal challenges continue, embroiled in another legal crossfire involving Linqto, the Securities and Exchange Commission (SEC), and the Department of Justice (DoJ). This development has further complicated XRP’s potential for a breakout.

Despite the improved price action, declining transaction activity suggests waning interest from retail investors. The Network Value to Transactions (NVT) ratio also indicates low on-chain activity, reinforcing concerns about weak network usage.