XRP saw an initial surge in activity and price, but that momentum quickly fizzled out. With network activity and whale transactions on the decline, XRP is now facing significant challenges in maintaining its bullish trajectory. The question remains: Can XRP break through the $2.60 resistance, or will the price struggle to move higher?

A Brief Surge in Network Activity

XRP’s legal victory provided a temporary boost to the asset. In the immediate aftermath of the SEC lawsuit dismissal, XRP saw a sharp spike in network activity. On March 19th, active addresses reached a year-to-date high of 626,854, suggesting that there was initial excitement in the market. Many hoped that the legal resolution would lead to sustained growth for XRP.

However, this initial surge in activity was short-lived. Data from Glassnode reveals that the number of active addresses dropped sharply after the 19th of March, falling to around 50,000 by March 23rd. This significant decline suggests that the initial enthusiasm surrounding the lawsuit’s dismissal was fleeting. The surge in network activity appears to have been more about short-term speculation rather than long-term adoption.

Whale Transactions Show Hesitation

In addition to the drop in active addresses, whale activity has also shown signs of hesitation. Whale transactions, which often provide a glimpse into the behavior of large investors, spiked briefly from March 19th to 20th. This aligned with the market’s positive response to the lawsuit’s dismissal. However, after March 20th, whale activity returned to normal levels, with no clear trend of accumulation or distribution.

The lack of sustained whale activity indicates that large investors are not fully committing to XRP. While they may have initially reacted to the lawsuit’s resolution, they seem hesitant to make significant moves, whether that means buying or selling. This absence of decisive whale action suggests that XRP’s future price movements may be limited without greater participation from institutional investors or large holders.

Price Struggles at $2.60 Resistance

Despite the brief surge in price following the lawsuit dismissal, XRP has struggled to maintain upward momentum. As of now, XRP is trading at $2.4387, a slight decline of 0.47% from the previous day. The price faces strong resistance at the $2.60 level, which has proven difficult for the asset to break in recent weeks. This level has acted as a ceiling, preventing XRP from pushing higher and triggering further gains.

The Relative Strength Index (RSI) for XRP is currently at 54.71, which indicates neutral momentum. While it’s not yet overbought, the lack of significant buying pressure suggests that the market is not fully convinced of XRP’s ability to break higher. The Moving Average Convergence Divergence (MACD) line, though slightly above the signal line, also suggests weak bullish momentum. If the price continues to struggle, a bearish crossover could occur, leading to a potential downward shift in market sentiment.

Support Zones and the Path Forward

On the downside, XRP has support between the $2.20 and $2.30 range. If the price falls below this support level, further downside is likely. However, if XRP can hold above $2.30 and break through the $2.60 resistance, there is a chance for a rally towards higher price levels. Traders will need to keep a close watch on these critical price points to determine whether XRP can regain upward momentum or if the market will remain stuck in a consolidation phase.

Conclusion

XRP’s post-lawsuit boost seems to have been a temporary reaction rather than the start of a sustained rally. Network activity and whale transactions have declined, and the price continues to struggle with resistance at $2.60. While there is still potential for further gains if XRP can break this resistance, the current market sentiment is neutral at best. Investors and traders will need to carefully monitor key support and resistance levels to assess whether XRP can regain its bullish momentum or if it will face further challenges.