XRP Stages Comeback—Can It Smash Through the $2.42 Barrier?

After a brutal crypto winter, XRP bulls are flexing again. The embattled token clawed back double-digit gains this week—but now faces its real test: conquering the $2.42 resistance level that’s haunted traders since 2021.

Market skeptics scoff, pointing to Ripple’s never-ending legal drama with the SEC. Meanwhile, bagholders whisper about ‘the next ATH’ between sips of hopium-laced coffee. Classic crypto.

Technical indicators hint at momentum, but let’s be real—in this market, even ‘fundamentals’ take coffee breaks when Bitcoin sneezes. Will this rally stick, or is it just another dead cat bounce? Place your bets.

XRP’s price overview

At press time, XRP was trading at $2.34 after rebounding from a local low of $2.22 earlier this week. The daily chart showed a consolidation phase following a strong upward rally in early May – A time when the price surged past the $2.50-mark before facing resistance NEAR $2.60.

Here, the $2.42-level seemed to be a key resistance zone, with multiple retests suggesting mounting pressure.

Source: TradingView

Meanwhile, the RSI was just above 50, indicating neutral momentum. Also, the MACD showed a bearish crossover but hinted at flattening.

This hinted at indecision. However, with the volume holding steady, XRP might be gearing up for a potential directional move.

Why the $2.42 resistance matters

The $2.42 level-has emerged as a significant resistance zone for XRP, as seen in the chart where multiple daily candles struggled to close above it.

This level previously acted as a support-turned-resistance during XRP’s retracement, making it psychologically and technically important. A successful breakout above $2.42 could pave the way for a retest of the $2.60 zone, while repeated rejections here may signal sustained consolidation or a potential dip towards the $2.20-$2.25 range.

On-chain metrics support bullish outlook

Source: Santiment

Daily active addresses and social volume have shown consistent strength throughout May, indicating sustained user engagement and rising investor interest.

Notably, a spike in social volume preceded the price surge earlier this month, hinting at growing community traction.

Source: Cryptoquant

Finally, exchange inflows saw a notable uptick around 9 May, coinciding with the price rally – A potential sign of strategic accumulation or short-term profit-taking.

Despite minor pullbacks, XRP’s ability to maintain elevated activity levels alluded to demand, strengthening the likelihood of a breakout if $2.42 is breached.