XRP Hits Two-Week Low Amid Ongoing Price Decline

NEW YORK, NY — XRP, the native cryptocurrency of the XRP Ledger, has experienced a notable downturn as it hit a two-week low of $2.08 on Tuesday, May 6, 2025. This marks the fifth consecutive session of losses, with the price dropping over 7% or approximately 16 cents in the past five days, according to TradingView data.

The decline has raised questions among investors and traders about the reasons behind XRP’s fall. At the time of writing, XRP was down 1.2%, trading at $2.1041. Analysts point to several bearish technical patterns indicating further declines, including a descending triangle on the daily chart, which may suggest a potential drop to $1.20 if current support levels break.

“XRP has been a bellwether of its own ecosystem,” commented Paul Howard, Director at Wincent. “What we will likely see is the asset break away from following BTC.” He notes that XRP’s value tends to be more influenced by news and product developments than the overall market trends.

One of the main contributors to XRP’s decline is a significant drop in activity on the XRP Ledger. Daily active addresses have plummeted to around 30,000, reflecting a marked reduction in transaction volume and liquidity. The decline correlates with a decrease in social dominance, which measures how much XRP is discussed compared to other cryptocurrencies.

Investor sentiment is also impacted by broader market conditions. Traders are awaiting the outcome of the Federal Open Market Committee (FOMC) meeting, which is expected to influence monetary policy and market sentiment. Concerns over inflation and potential rate hikes are fueling a risk-off mood across crypto markets.

In addition, recent macroeconomic pressures, including tariffs introduced at the beginning of 2025 and China’s retaliatory actions, have contributed to a $1.3 trillion downturn in the crypto market, with XRP itself falling nearly 45% from a peak of $3.20 to a low of $1.80 in early April.

“A falling Coinbase premium and weak funding rates suggest momentum may be fading,” said Markus Thielen, CEO of 10x Research. He emphasizes that this is a time for tactical positioning rather than blind risk-taking, especially with the upcoming FOMC meeting looming.

Traders have also engaged in profit-taking and repositioning after a significant rally in Q4 2024, where XRP surged 600% from $0.50 to over $3. This trend has led to an offloading of over $1 billion in positions in early April as market conditions changed.

While Ripple recently secured a regulatory victory by concluding a four-year lawsuit regarding XRP’s status, the market reaction has been subdued, indicating that the positive news may have already been priced in.

Furthermore, the SEC’s delay in deciding on proposals for a spot XRP ETF has tempered optimism among investors. Applications from firms like Franklin Templeton face postponements, with key decisions now pushed to mid-June 2025.

Despite these challenges, Ripple’s launch of the RLUSD, a bridge asset for cross-border transactions, has sparked debate about XRP’s future role within Ripple’s ecosystem. Some investors express skepticism about XRP’s long-term viability as RLUSD gains traction.

XRP’s immediate outlook remains bearish unless it can break resistance levels around $2.26. Analysts are closely monitoring support zones at $2.08 and $1.89, where breaks could signal further declines.

While the market navigates these layers of complexity, the path forward for XRP and its investors remains uncertain.