• XRP posts a modest 24-hour gain despite a 7.43% weekly loss.
• Trading volume drops over 38%, signaling reduced market activity.
• Key resistance levels identified at $3.4 and $3.6 may cap further upside.

XRP continues to rise, staying bullish amidst the sideways trend of the crypto market. XRP rose by 2.07% within the last 24 hours, after a 7.43% seven-day rise in the previous week.

Such positive price momentum points to a healthy near-term trend that is sustained through the growing popularity of the token. Now, XRP is trading at $3.19 with a 24-hour trading volume of $6.27 billion, but this represents a significant drop of 38.04% since the previous day.

Despite this volume drop, token market capitalization stands strong at $189.21 billion, reasserting its position among the top digital currencies.

Sell Walls Threaten XRP’s Short-Term Breakout

The crypto analyst CW (@CW8900) was recently talking about one possible challenge to XRP’s price shortly. From a chart that he shared, two significant sell walls are found at $3.4 and $3.6.

Those kinds of areas of major strength in the market are typically created where significant holders place large sell orders that keep the price from going up any further.

The chart, likely either a daily chart or a 4-hour chart, illustrates the token declining sharply from local highs and currently at a price below the first wall at $3.4. Red sell areas represent possible traps for additional price increases unless heavy buying comes back into play.

If a green supporting trendline materializes in the $2.0–$2.5 region, it indicates that buy stops will likely come in on a breakdown through that region. This trend, rising price, and ensuing pullback are characteristic of profit-taking, common in key resistance areas.

Also Read: XRP’s $30 Dream? Wave Analysis Unfolds as Price Eyes Critical Breakout

Volume Drops as Market Consolidates

The token’s newest price surge comes with a warning sign. 24-hour volume fell drastically by some 48% to $9.78 billion. This means that the majority of traders are backing off due to market indecision.

But open interest did rise higher by 2.11% to $9.20 billion. This means that even though fewer trades are taking place, leverage traders are continuing to hold tight to positions.

Additionally, XRP’s funding rate stands at 0.0114% with a slight uptrend. This means that more traders are risking that the price will go up and not down.

We are currently seeing the price going sideways, and with this slight bullish bias, we can assume that the market waits in anticipation to see a clear direction.

Overall, XRP is still within its uptrend, but with rigid resistance and declining trading volume holding back its momentum. To break through $3.4 and more, a more significant buying momentum needs to be established.

Until such a situation arises, the token will largely remain within predetermined limits amidst anticipation of more solid confirmation of either more upward momentum or possible retreat.

Also Read: Is XRP Ready to Explode? Wave 3 Setup Points to $3.82