XRP Analysis: Navigating Price Resistance Toward $2.35

XRP, the cryptocurrency associated with the Ripple network, has seen a marked increase in social dominance, currently sitting at 2.92%, while its weighted sentiment has turned positive at 0.166. This shift comes after a prolonged period of negative sentiment, suggesting a potential turnaround in market perception. However, despite these positive indicators, XRP's price remains trapped below the critical resistance level of $2.35, raising questions about the sustainability of the current bullish sentiment among traders.

As of June 22, 2025, XRP's price has stabilized around $2.14 after bouncing from the $2.00–$2.10 demand zone. Despite this rebound, the cryptocurrency continues to be constrained within a descending wedge, limiting upward movement. Analysts argue that a confirmed breakout above the $2.35 resistance could signal a bullish trend, potentially propelling XRP toward $2.60. Conversely, failure to breach this resistance may lead to further declines, testing support levels around $2.00 or even $1.80.

According to Santiment, a cryptocurrency analytics firm, the current market sentiment reflects a strong bullish expectation, with 76.34% of Binance accounts holding long positions. However, this optimism is juxtaposed with weak on-chain activity, as daily active addresses have dropped to 17.4K, indicating lower network engagement. Furthermore, transaction counts have cooled following a spike earlier in June, suggesting a lack of steady usage patterns. This divergence between heightened sentiment and declining on-chain metrics raises concerns about the speculative nature of the current market enthusiasm.

The NVT ratio, which compares the market capitalization of XRP to its transaction volume, has also experienced a sharp decline of 18.43% over the last 24 hours, falling to 237.16. Typically, a falling NVT ratio signals undervaluation; however, experts caution that without consistent growth in daily active addresses or sustained transaction throughput, this drop may reflect mere price and volume noise rather than enhanced network utility. CryptoQuant notes that a meaningful shift in the NVT ratio must be supported by broader on-chain strength to be reliable.

Long-term holders of XRP appear to be in a favorable position, with the MVRV Long/Short Difference at +20.99%. This indicates that long-term holders are currently profiting compared to short-term participants. However, the prevailing market conditions could prompt these holders to secure gains if XRP fails to ascend beyond the $2.35 level, potentially leading to selling pressure.

In summary, while XRP's social buzz and bullish sentiment hint at breakout potential, the underlying on-chain activity remains fragile, and liquidation risks loom nearby. A decisive move above $2.35 is necessary to confirm market strength and attract follow-through volume. Should bulls fail to overcome this resistance or defend the $2.10 support, the momentum may shift back toward consolidation, underscoring the need for genuine demand to accompany market sentiment for a sustainable rally. The future trajectory of XRP will depend significantly on whether bullish sentiment can translate into tangible market activity.