Ripple’s XRP at a Crossroads: Two Red Flags Traders Can’t Ignore
XRP bulls beware—the charts are flashing warning signs. Here’s what’s rattling the market:
1. Liquidity Crunch: Whale wallets are moving stacks, but who’s buying? Thin order books could amplify any sell-off.
2. Regulatory Déjà Vu: SEC ghosts still haunt the corridors—just when Ripple needed clean hands to court institutional money.
Funny how ’decentralized’ assets still tremble at regulatory whispers. Maybe blockchain hasn’t quite killed the middleman after all.
Back to $2?
It was just this time last week when XRP’s price surged to a multi-month peak of almost $2.7. Although it was stopped there at first, the bulls initiated another leg up on Wednesday that resulted in touching $2.65. However, the breakout attempts saw little success, and the subsequent rejections pushed XRP down to $2.3 by Friday.
The asset recovered some ground over the weekend and even challenged the $2.5 resistance during the brief Sunday pump in the entire market, where it was stopped once again. As of now, Ripple’s token is back to $2.3, which is a critical support level, according to Ali Martinez, that has already been tested on a couple of occasions in the past few weeks.
If the asset breaks below it, though, the popular analyst predicted a further decline to $2, which is another key support line that has defended XRP numerous times since the start of the year.
$XRP could return to $2 if it loses the critical $2.30 support! pic.twitter.com/s6ozUyGYRC
— Ali (@ali_charts) May 18, 2025
Whale Watch Perps, an X account following big whales’ positions, informed that one such large market participant with an impressive PnL record has reduced their long XRP position, which could also be considered a bearish sign.
A top trader by PnL on Hyperliquid just reduced their long $XRP position
This user’s current position is long $54.96K of $XRP at an average price of $2.32.
— Whale Watch Perps (@whalewatchperps) May 19, 2025
The Good News
After the previous slip to $2.3, Martinez noted that XRP had flashed a buy signal on the hourly, according to the TD Sequential, which could mean a price reversal is on the horizon.
Additionally, Xoom said on X that the market interest in XRP has been “reset,” given the rising number of Google searches for the asset in the past week after a prolonged period of downtrend. According to the X user, price breakouts appear in precisely such moments.
Markets have reset their interest in XRP.
Breakouts occur when most are least interested in price action/ bored. pic.twitter.com/F0W3f9is2g
— xoom (@Mr_Xoom) May 19, 2025
