XRP (XRP) Price: Market Turmoil Pushes Token Toward Make-or-Break Support Zone

TLDR

XRP dropped 4% in 24 hours to $2.12 as broader crypto market declined 5% due to political tensions Trading volume jumped 80% to $2.97 billion while derivatives volume increased 70% during the selloff Technical analysis shows XRP testing lower Bollinger Band at $2.07 after breaking below 20-day moving average Ripple vs SEC case update expected June 16 while corporate investments total over $400 million ETF applications from multiple firms pending with Franklin Templeton decision due June 17

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XRP has fallen to $2.12, down 4% over the past 24 hours, as the token approaches a critical support level. The decline comes as the broader cryptocurrency market dropped nearly 5% on June 6.

XRP Price

Political tensions between President Donald Trump and Elon Musk sparked the market-wide selloff. The conflict began when Musk stepped down from the Department of Government Efficiency and criticized Trump’s federal spending bill.

Trump responded by revoking a NASA nomination connected to Musk’s circle and warned that Musk’s businesses could lose federal contracts. The situation escalated when Musk linked Trump to the Jeffrey Epstein files and called for impeachment.

BREAKING: I don’t care what political side you’re on. Donald Trump is officially off the rails, threatening Elon Musk.

This is blatant extortion. pic.twitter.com/NcRGoFo0H6

— Brian Krassenstein (@krassenstein) June 5, 2025

Trump called Musk “crazy” in response. Tesla shares dropped more than 14% and Musk announced SpaceX would retire its Dragon spacecraft.

XRP’s trading volume surged nearly 80% to $2.97 billion during the selloff. Derivatives data from CoinGlass shows trading volume jumped 70% while open interest fell 3.7%.

Source: Coinglass

The drop in open interest with rising volume often indicates traders are closing longer positions. Many rotate into short-term trades during volatile market conditions.

Technical Analysis Points to Weakness

XRP’s price has slipped below the 20-day moving average and is testing the lower Bollinger Band near $2.07. This area represents the last support level from XRP’s recent trading range.

Source: TradingView

A break below $2.07 could open the path to deeper losses. The relative strength index sits just under 40, showing weak momentum without reaching extreme oversold conditions.

Most moving averages display bearish signals. The price trades below the 10-day through 100-day averages, which are all trending downward.

The 200-day exponential moving average near $2.08 may provide key support if buyers emerge. The moving average convergence divergence remains negative, confirming the downtrend.

Legal and Corporate Developments

A major update in the Ripple vs SEC case is expected by June 16. Investors are watching for any signs of a settlement that could reduce legal uncertainty.

Corporate interest in XRP continues growing despite the price decline. VivoPower has committed $121 million to XRP as part of its treasury strategy.

Chinese firm Webus International revealed plans for a $300 million XRP treasury. ACG, a subsidiary of Nasdaq-listed Hyperscale Data, announced plans to acquire up to $10 million worth of XRP by the end of 2025.

ETF applications from Bitwise, Grayscale, and other firms remain under review. Franklin Templeton’s decision is expected on June 17.

The hourly chart shows XRP broke below a key bullish trend line with support at $2.192. The token tested the $2.050 zone before consolidating below the 23.6% Fibonacci retracement level.

Current resistance levels sit at $2.120 and $2.150. The next major resistance is $2.175, near the 50% Fibonacci retracement level.

If XRP fails to clear $2.15 resistance, another decline could target the $2.050 support level. A break below $2.020 could send the price toward the critical $2.00 support zone.

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