XRP Price Prediction: Will the Digital Asset Break Above the $2.42 Resistance Zone?

XRP has been consolidating around the $2.34 level after rebounding from recent lows. The digital asset is now testing a crucial resistance zone that could determine its next major move.

XRP price has been consolidating and showing mixed technical signals as the market awaits a directional move. The $2.42 price level has emerged as a crucial zone of resistance.

Key Takeaways

XRP price has encountered resistance around the $2.42 price level, testing it on multiple occasions without managing to close above it.

The $2.42 price point previously acted as support during the recent downswing.

A breakout above $2.42 could pave the way for a retest of the $2.60 zone.

However, repeated rejections at this level may signal either continued consolidation or a potential drop toward the $2.20-$2.25 range.

The RSI indicator is sitting just above 50, suggesting neutral momentum. Meanwhile, the MACD shows a bearish crossover but appears to be flattening.

Volume has remained relatively stable during this consolidation phase, with no signs of strong buying or selling pressure. This stability in trading volume may indicate that XRP is preparing for its next directional move.Capital Flow Analysis Reveals Recent Investment PatternsOn-chain data reveals that over 70% of all capital stored in XRP entered the network during the past six months. This capital influx coincided with the high prices experienced during this period.

The realized cap metric, which tracks the sum of cost bases for all network addresses, has seen explosive growth over the past six months. This growth pattern indicates a large amount of new money has flowed into the cryptocurrency.

Most of this recent capital entered near price tops over the past six months. The timing suggests these investors purchased during XRP’s peak performance period.

This capital deployment pattern creates a delicate situation for the asset. A modest price decline could quickly push many recent investors into loss territory.

Daily active addresses and social volume have maintained consistent strength throughout May. These metrics indicate sustained user engagement and growing investor interest.

Since peaking in March 2025, the number of XRP active addresses per day (14D-MA) has fallen by more than 90.41%.

A spike in social volume preceded the price surge earlier this month. This pattern suggests that growing community interest may foreshadow significant price movements.

Exchange inflows experienced an uptick around May 9th, aligning with the recent price rally. This timing could indicate either strategic accumulation by traders or short-term profit-taking activity.

Despite minor pullbacks, XRP has maintained elevated activity levels compared to March and April. This sustained activity suggests that underlying demand remains present.

However, the number of active addresses has declined over 90% since reaching a peak in March. This decline represents a sharp reduction in daily transaction activity on the XRP network.

The post XRP Price Remains Bid Above $2.34 as Crucial Resistance Holds at $2.42 appeared first on Benzinga.