XRP Battles $2.4 Resistance Amid Mixed Performance
1min read XRP, the native cryptocurrency of the Ripple network, has been facing resistance at the $2.4 level, raising questions about whether bullish investors can overcome this barrier. Despite recent gains, XRP's price action suggests a challenging path ahead.
XRP has shown strength against Ethereum (ETH), the largest altcoin by market capitalization, with a 24-hour gain of 5.57% compared to ETH's 2.25%. However, XRP's recent performance has been mixed, with the cryptocurrency erasing some of its gains following the U.S. Presidential election. As XRP retests the $2 support level, investors are wondering if the cryptocurrency can recover and maintain its momentum.
Technical analysis of XRP's price action reveals a bearish structure, with the cryptocurrency forming multiple ranges in recent months. Each range has been shorter than the previous one, and the most recent range was broken out of in mid-February. Since then, XRP has fallen below the range lows, which coincide with the 78.6% Fibonacci retracement level based on the rally earlier this year that reached the $3.4 high.
Despite the retracement, the Accumulation/Distribution (A/D) indicator has continued to trend higher, suggesting that accumulation was going on despite the price decline. This lack of selling pressure could indicate a quick recovery for XRP. However, the importance of the $2.3 resistance level and the bearish structure make a move higher in the near term unlikely.
The Money Flow Index (MFI) is currently at oversold levels, suggesting a potential price bounce. However, this move may struggle to push beyond the $2.3 resistance level. The 1-month liquidation heatmap shows a large liquidity pocket at $2.84-$2.88, which could act as a magnet for prices. Additionally, the $2.36 and $2.62 levels are important interim magnetic zones that could attract prices.
The 1-week chart shows a strong short-term magnetic zone at $2.36, which is also present on the monthly chart. A short-term price bounce to $2.36-$2.4 is likely, followed by a price drop. Although the A/D indicator shows subdued selling pressure on the daily chart, the 
