XRP Price Outlook: Resistance Rejection Signals Potential Drop

XRP price momentum continued to display signs of weakness following recent attempts to break above key resistance levels. The digital asset, heavily associated with the Ripple blockchain protocol, has faced stiff resistance that could influence short-term trading behavior.

On July 2, XRP declined slightly by 0.68%, with current trading now hovering around $2.1765. This downward movement followed an unsuccessful breakout at the $2.1976 resistance level, which now appears to be a significant obstacle for upward momentum.

Examining the hourly chart, XRP’s inability to push past local resistance has triggered a downward movement. The asset’s rejection at $2.1976 signaled a false breakout, reversing swiftly and now pressing toward support near the $2.16 mark. Should bearish energy persist, a retest of this zone looks likely in the immediate term.

Zooming out to a broader time frame, XRP’s current candle remains nestled within the prior day’s range. This containment signifies a lack of strong directional force, offering little in terms of bullish or bearish conviction. As price moves away from major support or resistance levels, traders could consider tracking short-term zones like $2.16 for clues on future direction.

Should XRP fail to stabilize in the $2.16 range, traders may want to brace for a further dip toward the $2.10 to $2.15 corridor. This zone reflects prior areas of interest where buying pressure has previously emerged. Without renewed bullish drivers, this range may offer a temporary refuge from further declines.

Taking the midterm outlook into account, the situation appears notably more precarious. This week’s candlestick suggests growing bearish sentiment, with the current formation leaning toward a downside bias. If the weekly candle closes with an extended upper shadow and weaker body, it may further discourage bulls and dampen chances of a short-term rebound.

In the absence of any new breakout or reversal confirmation, XRP’s chart structure leans toward a consolidation or downward correction phase. From a technical analysis standpoint, traders should approach with caution until XRP decisively surpasses resistance or forms a reliable bottom near key demand areas.

As of this analysis, XRP remains under selling pressure and is trading below local highs. Market participants might want to watch how the token behaves around the $2.16 support zone, as it holds the key to any immediate shift in sentiment.

Related: Expert Advice: Sell XRP If You’re Confused

While the broader sentiment around Ripple and XRP remains highly dependent on macro and regulatory developments, the current price action points toward caution in the near term. Unless bulls regain control and push beyond present resistance, XRP may continue facing headwinds as it adjusts within its current trading channel.