XRP, the cryptocurrency associated with the Ripple network, faces significant market resistance at a critical price of $2.40. Analyst @ali_charts has highlighted this resistance point, drawing attention to the price action in recent days and suggesting that this level will play a pivotal role in determining the short-term future of the asset. With XRP showing upward movement, the $2.40 resistance zone represents a significant barrier to further gains and could signal a reversal or a breakthrough in the ongoing market cycle.
A recent analysis of XRP’s market structure, mainly its UTXO (Unspent Transaction Output) Realized Price Distribution (URPD), has offered valuable insights into the asset’s price behavior and resistance levels. According to data from Glassnode, XRP’s price distribution has seen significant activity in recent weeks, with a marked increase in the realized price for large volumes of XRP.
The attached chart offers a detailed look at this distribution. A sharp spike is visible in the graph, showing the concentration of XRP tokens that have recently been traded at a higher realized price. These large transactions and price realizations reflect a price point that many holders of XRP consider crucial, signaling that a significant portion of the XRP supply is now priced around these levels. Notably, the chart highlights the range where most of these realizations have occurred, with attention drawn to the $2.40 price area.
The Importance of $2.40 Resistance: Will XRP Break Through?
The $2.40 resistance zone is not just a psychological barrier for traders but a technical one that could mark a critical turning point for XRP. Breaking through this level could open the door for further bullish momentum, pushing the price higher toward the following resistance levels. However, failure to break through could result in a price pullback, causing additional uncertainty in the market.
What makes this resistance particularly important is the concentration of XRP holders who have acquired their assets around this price level. Based on the realized price distribution, it’s clear that a substantial portion of XRP transactions and holdings are clustered around this range, making it a pivotal moment for the asset’s price action. A breakthrough at $2.40 would indicate a significant sentiment shift has occurred, signaling potential for future rallies.
As XRP tests this critical resistance level, the market is waiting with bated breath to see how it will respond. Traders and investors closely monitor the $2.40 mark, as it is not just a number but a psychological and technical threshold. The outcome of this battle could set the tone for XRP’s price movement in the coming weeks.
In the short term, there are two possible scenarios: if XRP successfully breaks through the $2.40 resistance, the next challenge will be to sustain upward momentum and target new highs. On the other hand, a rejection at this level could see XRP revisit lower price ranges, with the potential for a deeper correction. In either case, the coming days will be crucial for XRP as it faces one of its most significant tests in recent times. Whether or not the $2.40 resistance gives way will be key to determining the cryptocurrency’s next move. Investors and traders will watch closely to see if XRP can continue its rally or if the bears will retake control.
