XRP, the cryptocurrency tied to the Ripple network, is at a pivotal moment. Despite recent gains, the asset faces significant resistance at the $2.4 mark, leaving traders and investors wondering: can it push past this barrier and maintain bullish momentum?

In recent months, XRP has shown an intriguing pattern. It has formed several ranges, each shorter than the last, highlighting its volatile behavior. After breaking out of a crucial range in mid-February, the price initially showed promise, but quickly reversed course and fell below the range’s lows. For many analysts, this movement underscores the ongoing challenges XRP faces as it navigates the broader market landscape.

XRP’s Struggles and Short-Term Recovery

At present, XRP is encountering a critical resistance point around $2.4, and this level has proven difficult for bulls to break through. However, despite the bearish outlook, there are signs that XRP could be poised for a short-term recovery. One of the key factors contributing to this possibility is the reduced selling pressure, which has been notably lower compared to Bitcoin’s price action.

If Bitcoin were to experience a rebound, XRP could follow suit, as the cryptocurrency has often shown positive correlations with the market leader. The fact that XRP has posted a notable 5.57% increase over the last 24 hours, outpacing Ethereum’s 2.25% rise, suggests that it could outperform even the top altcoins if the broader market sentiment shifts favorably.

Moreover, XRP has managed to hold onto substantial gains since November, having surged 351% from its lows during the early days of the 2025 market. In comparison, Ethereum (ETH), the second-largest cryptocurrency by market cap, has seen its gains completely erased following the US Presidential election. This stark contrast in performance raises the question: can XRP maintain this relative strength and recover after retesting the $2 support level?

The Technical Picture: Bearish Structure with Potential for a Bounce

Looking at the charts, XRP’s technical structure suggests it is still in a bearish trend. The 1-day chart shows that after a breakout in mid-February, XRP failed to sustain its bullish move and quickly retraced. This reversal took the price below its range lows, which coincided with the 78.6% Fibonacci retracement level. This retracement was part of a larger rally that had initially driven XRP to the $3.4 mark earlier this year. The fact that XRP has retraced almost all of its gains from that rally indicates ongoing market weakness.

However, there are signs of underlying accumulation despite the price retracement. The Accumulation/Distribution (A/D) indicator, which tracks buying and selling pressure, continues to trend higher, signaling that investors have been buying into the asset, even as the price dips. The lack of significant selling pressure could potentially set the stage for a quick recovery if the broader market turns bullish.

Despite this, XRP’s recovery may not come easy. The $2.3 resistance level remains a major hurdle, and even if the price manages to bounce back, the bulls may struggle to push past this barrier in the short term. The Money Flow Index (MFI), a tool used to measure buying and selling pressure, is currently at oversold levels, suggesting that a short-term bounce is possible, but the potential for further upward movement beyond $2.3 seems unlikely for now.

The Liquidity Zones: Key Levels to Watch

Another crucial aspect of XRP’s price action is the liquidity zones that could play a role in its near-term movements. A heatmap from Coinglass, which tracks liquidation levels, highlights a large liquidity pocket between $2.84 and $2.88. This range marks the lower high from mid-February, following the retracement after the bullish breakout. Additionally, the $2.36 and $2.62 levels are also identified as key “magnetic” zones, where XRP’s price could potentially attract buying or selling pressure.

In the immediate term, analysts are watching the $2.36 resistance closely. Both the 1-week and 1-month charts show this level as a critical zone that could act as a short-term magnetic point. Given the current market structure and the absence of strong selling pressure, a price bounce to this $2.36-$2.4 zone seems likely. However, this move may be short-lived, with a subsequent price drop expected after reaching these levels.

What’s Next for XRP?

As of now, XRP remains in a precarious position, trapped beneath the $2.4 resistance. While it is technically still in a bearish structure, the reduced selling pressure and the potential for a market rebound provide a glimmer of hope for bulls. If XRP can sustain its momentum and manage a breakout above $2.4, it could signal the beginning of a new bullish phase.

However, it is essential to watch the key resistance levels closely, especially around $2.36 and $2.4. Should these levels continue to hold firm, XRP could face further challenges in its quest for higher gains. On the other hand, if XRP can push past these hurdles, it may pave the way for a more sustained rally in the coming weeks.

For now, traders and investors will be closely monitoring XRP’s price action, as any move above the $2.4 mark could be a significant indication of strength and momentum. With Bitcoin’s influence still a major factor in the market, XRP’s performance in the near term could hinge largely on broader market conditions.

Conclusion

XRP is at a crossroads. The $2.4 resistance remains a formidable barrier, but with reduced selling pressure and signs of accumulation, the cryptocurrency could be poised for a short-term recovery. As always, market conditions and broader trends will play a significant role in determining whether XRP can overcome this resistance and sustain its bullish momentum.