XRP Faces Continued Pressure Amid Legal and Market Challenges

XRP experienced a second day of declines, dropping 0.97% to $2.1882, as broader market weakness and unresolved legal tensions with the SEC weighed on investor sentiment. Despite Ripple CEO Brad Garlinghouse’s optimism, the SEC’s hesitation to withdraw its appeal has kept the market on edge. Additionally, a technical glitch involving a 10,000 XRP bug briefly alarmed the community, though it was quickly addressed. This article delves into the factors influencing XRP’s recent performance and what lies ahead for the cryptocurrency.

XRP Dips Amid Legal Uncertainty and Market Jitters

XRP faced a second consecutive day of declines, dropping 0.97% to $2.1882 as broader market weakness and unresolved legal tensions weighed on sentiment. The SEC’s reluctance to formally withdraw its appeal in the Ripple case continues to cast a shadow, despite CEO Brad Garlinghouse’s earlier confidence in a favorable outcome.

Technical concerns briefly flared after a 10,000 XRP bug triggered community alarm, prompting intervention from Ripple CTO David Schwartz. Market participants remain on edge ahead of the SEC’s May 8 meeting, with ETF speculation adding another layer of volatility to XRP’s precarious position.

XRP Price Holds Near Support Zone as Ripple Adjusts Escrow Strategy

XRP hovered NEAR a critical support zone between $2.01 and $1.90 this week, with traders eyeing a potential breakout. The token traded at $2.14 at press time, testing resistance at $2.25 amid consolidation following recent volatility.

Ripple executed an atypical escrow maneuver, locking 700 million XRP without the customary monthly release. This marks the third consecutive month of adjusted token management, with the company typically cycling 1 billion XRP through escrow contracts.

XRP Faces Sustained Bearish Pressure as Short Sellers Dominate

XRP remains under bearish control as derivatives data reveals a persistent short-selling bias. The long/short ratio stands at 0.9205, reflecting sustained negative sentiment for nearly two weeks. Trading activity tells a contradictory story—open interest dipped 1.92% while derivatives volume surged 35% to $3.28 billion, signaling concentrated downward speculation.

Technically, XRP hovers precariously at $2.14, barely above the critical $2.05 support level. A breach could trigger accelerated declines. The RSI’s neutral 47 reading masks its downward trajectory, suggesting room for further depreciation before oversold conditions emerge.

XRP Price Prediction and Elliot Wave Analysis for May 2025

Ripple’s XRP continues to trade sideways amid broader market uncertainty, with analysts scrutinizing its corrective rally patterns since April 7. Key support levels at $2.11, $2.08, and $2.14 have proven resilient despite minor Fibonacci breaches.

The token’s lack of clean impulse waves suggests lingering indecision among traders. Market watchers await either a decisive breakout or breakdown to establish XRP’s next directional bias.