XRP exhibits tentative signs of buyer dominance but confronts significant resistance near the $2.3 price level, with technical indicators suggesting potential short-term downside. The cryptocurrency remains constrained by a major supply zone around $2.3, which aligns with the 38.2% Fibonacci retracement level and continues to cap immediate upside potential.
Technical analysis reveals conflicting signals, as the Relative Strength Index (RSI) and On-Balance Volume (OBV) show emerging bullish momentum but lack conviction for a decisive breakout. The OBV has remained range-bound since April, reflecting insufficient sustained buying pressure to overcome key resistance.
A liquidity cluster between $2.29 and $2.36 heightens reversal risks if buyers fail to maintain price support above this threshold. On-chain metrics indicate capital outflows and a declining Network Value to Transactions (NVT) ratio, signaling accumulation and potential undervaluation. However, these conditions have not yet translated into significant price appreciation.
The bearish daily swing structure and persistent resistance at $2.3 underscore market uncertainty. Analysts advise traders to exercise caution until stronger momentum signals emerge, as the current setup favors consolidation or a pullback despite underlying accumulation patterns.