TLDR:
- XRP price dropped 2.7% to $2.41 despite broader crypto market rally
- Fresh legal controversy involving Trump’s endorsement triggered $360M in profit-taking
- XRP maintains critical support at $2.36, with potential downside to $2.09 if broken
- Derivatives show trader caution with neutral funding rates and declining open interest
- XRP has held above the $2 threshold for almost five months, a first in its history
Ripple’s XRP has experienced a notable price decline amid renewed legal concerns, even as the broader cryptocurrency market enjoys upward momentum. On Sunday, May 11, XRP price fell 2.7% to $2.41, decoupling from the market rally that saw Bitcoin rise above $104,000 and competitors like Ethereum and Solana gaining 5.4% and 4.8% respectively.
The recent downturn erased approximately $360 million in XRP trading volume, raising questions about the token’s ability to maintain its position above the crucial $2 support level that has historically acted as resistance.
The current price action appears to be directly linked to a fresh legal controversy. Reports indicate that President Donald Trump, who recently suggested XRP should be part of a “strategic crypto reserve,” may have been misinformed about Ripple’s regulatory standing.
This comes just days after Ripple secured a $50 million final settlement with the SEC, ending its long-running legal battle. The presidential endorsement, rather than boosting confidence, has inadvertently attracted new scrutiny.
The XRP/BTC ratio fell 3% to its lowest level in two months, confirming the decoupling trend from the broader market rally. This metric often serves as a proxy for institutional allocation preferences, suggesting that XRP may continue to lag if the broader rally persists without a sentiment reversal.
Technical Indicators and Support Levels
Despite the aggressive pullback, XRP has found short-term support at $2.36, which coincides with the midline of the Keltner Channel. Maintaining price action above this level preserves the broader bullish structure built since late April.
Thats about as clean as it gets.
This time it is different.
This time it's XRP. pic.twitter.com/9mK8QVuQVX
— Guy on the Earth (@guyontheearth) May 9, 2025
The XRP Fear and Greed Index slipped from 78 to 63 within 24 hours, while social sentiment turned net-negative according to data from CFGI.io and LunarCrush. The weekly RSI, which had reached an overbought 74 on Friday, reversed sharply to 65, indicating a loss of upward momentum.
If market risk appetite continues without XRP participation, the $2.25 support zone may fail, opening a retest of the 20-day EMA at $2.09. The lower Keltner Channel band at $2.005 provides a secondary support region should the market deepen its correction.
XRP price has been unable to hold above $2.50, an area tested three times in the past 30 days and rejected each time with significant sell-side pressure. This suggests strong resistance at this psychological level.
A Unique Cycle in XRP’s History
What makes the current situation particularly interesting is XRP’s sustained position above the $2 threshold. Looking back at XRP’s price history reveals a pattern of failed attempts to maintain this level.
In March 2017, XRP surged from $0.0055 to a high of $3.80, initially breaking through $2 on December 30, 2017. By January 13, 2018—just two weeks later—it dipped below this level again. Similarly, in April 2021, XRP attempted to break past that level once more, peaking at $1.96 but failing to make further progress.
From January 2018 all the way up to December 2024, the $2 line acted as a ceiling for XRP, capping price action for almost seven years. Each time XRP tested this resistance, it fell back into the $1 zone.
However, XRP finally cleared the $2 trendline in December 2024 during a broader market rally. What’s different this time is that the token has stayed above this line for almost five months—a first in XRP’s history.
While its recovery hasn’t been as rapid as Bitcoin’s or Ethereum’s, maintaining this level longer than ever suggests a potential change in long-term market structure, with some analysts targeting future price levels of $5.30 if the current support holds.
Derivatives Market Signals Caution
XRP derivatives suggest heightened caution heading into the new week. Despite an initial spike in long contracts following the SEC settlement, weekend activity showed a pronounced reversal.
Open Interest across major platforms such as Binance and Deribit declined by 4.7%, indicating deleveraging as traders braced for headline volatility. The funding rate on perpetual futures has turned neutral, a sharp shift from the 0.03% positive premium observed last Thursday.
Without a positive catalyst to restore price stability, XRP is likely to consolidate below $2.40 or potentially test the $2.25-$2.09 support range. Until legal clarity stabilizes, derivative traders appear content with a defensive posture, awaiting either a decisive technical reclaim above $2.50 or further downside to re-enter large positions.
XRP’s daily candle on May 11 closed with a sharp -4.32% drop, printing a full-bodied Marubozu Black bar, often indicative of bearish control. Despite Friday’s volume delta registering a steep negative -33.09 million and a cumulative volume reversal, XRP remains structurally bullish above the Keltner Channel midline.
XRP is currently trading at $2.37, with analysts watching closely to see if it can maintain this critical support level in the coming days and weeks.
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