XRP Continues Decline to Two-Week Low in May Amid Weak Technical Signals and Lower Activity

XRP, the digital asset native to the XRP Ledger, has extended its losing streak to five sessions, slipping to a two-week low of $2.08 on Tuesday, May 6, 2025. According to TradingView data, the token has dropped over 7% — about 16 cents — over the past five days. The recent drop has raised concerns among traders and investors, who are trying to understand what’s causing the sharp fall. Possible reasons include weak technical signals, changing market mood, and wider economic uncertainty. XRP Slides to Two-Week Low Amid Bearish Signals XRP is falling again today (Tuesday), dropping to an intraday low of $2.09 — the lowest price in two weeks — as last week’s sell-off continues. At the moment, XRP is down 1.2% and is trading at $2.1041. XRP’s price charts show signs of weakness, with a few negative patterns adding to the ongoing decline. In my technical review, I found a descending triangle forming on the daily chart — a pattern that could lead to a 45% drop toward $1.20 if the current support level fails to hold. Key Support Zone at Risk for XRP XRP continues to lean on a key price band between $1.77 and $1.90 — a region where buyers have stepped in multiple times since late last year. This zone was revisited in February, March, and April, showing its importance. But if XRP drops below this level, it would signal a clear shift in momentum and open the door to a potential move down to around $1.20. XRP Price Drop Driven by Lower Activity and Whale Selling The main reason for XRP’s price drop is the sharp decline in activity on the XRP Ledger. Daily active addresses have fallen to about 30,000, signaling lower transaction volumes and liquidity. Whale activity is also contributing to the downward trend. Large holders have been selling during price rallies, which started in Q4 2024 and continue into May 2025. This selling, along with a gap between earlier price increases and dropping institutional support, points to a loss of confidence among major investors. The combination of less network activity and whale selling is a major factor in XRP’s price decline today, as demand fails to keep up with the increasing supply. Ripple’s Legal Win Fails to Spark Market Reaction BREAKING: SEC DELAYS DECISION ON FRANKLIN TEMPLETON’S SPOT XRP ETF — NEW DEADLINE JUNE 17 The U.S. Securities and Exchange Commission (SEC) has officially pushed its decision on the Franklin Templeton XRP Spot ETF to June 17, 2025, per a new filing published today. The... pic.twitter.com/inWewJeQVB Although Ripple recently reached an important legal milestone, the market’s reaction has been underwhelming. Ripple settled a four-year lawsuit with the SEC for $50 million, which cleared up the status of XRP. This settlement, mentioned in Ripple’s latest XRP Markets Report, removes a major concern but hasn’t caused a price increase, suggesting the news was already expected. At the same time, delays in the approval of spot XRP ETFs are lowering hopes. The SEC has delayed applications from companies like Bitwise, Franklin Templeton, and Grayscale, with Franklin Templeton’s proposal pushed back to June 17. While approval chances are between 65% and 87%, the delays are seen as a negative sign, as investors are waiting for the institutional demand that spot ETFs could bring. Final Thoughts XRP’s ongoing price drop is due to weak technical signals, lower activity on the XRP Ledger, and large investors selling their holdings. Despite Ripple’s legal settlement with the SEC, the market’s reaction was muted, indicating the news was already expected. Delays in spot XRP ETF approvals have also lowered investor confidence. If XRP breaks key support levels, the price could fall further. Investors should watch ETF approvals and network activity developments to see if XRP can recover.