XRP faces downside risk as it struggles to hold above the key $2.30 support level.
Bearish indicators on RSI and MACD suggest weakening momentum and reduced buying pressure.
Legal uncertainty and declining derivatives interest weigh heavily on XRP's short-term outlook.
XRP is under renewed selling pressure as recent price action shows signs of weakening momentum near a key support zone. The $2.30 level has emerged as a crucial area that traders are watching closely. A breakdown from this point could lead to further downside toward $2.
Technical Pressure Builds as Momentum Slows
According to an analysis prepared by Bitunix, XRP saw a sharp recovery from $2.30 to $2.40, forming what is described as a “V-shaped recovery.” However, the move is now facing resistance near the $2.40 and $2.45 zones. The asset failed to maintain strength above the 100-hour Simple Moving Average and is now trading below it.
The RSI has dropped below 50, showing reduced buying pressure. At the same time, the MACD has moved deeper into the bearish zone, signaling caution among traders. XRP touched a low of $2.2994 on May 17 before stabilizing.
https://twitter.com/ali_charts/status/1924230013513040015
It now trades near $2.39, with the trend line at $2.355 acting as a short-term support level. If the price breaks below this level, the next support is seen near $2.32. A close below $2.30 could open the path for a move toward $2.20 or even $2.12.
Legal Uncertainty and Market Sentiment Weigh on XRP
According to attorney John E. Deaton, legal uncertainty from the ongoing SEC lawsuit continues to affect investor sentiment. In his latest statement, Deaton noted that institutional demand may stay low until the SEC provides more clarity.
Meanwhile, data from Coinglass shows open interest in XRP derivatives has fallen to $4.75 billion, while trading volume dropped over 29%. This retreat suggests weakening interest among leveraged traders.
Binance’s long/short ratio falling below 1.0 confirms broader bearish positioning. As a result, failure to hold the $2.30 support could lead XRP to retest lower levels. XRP’s short-term outlook will depend on its ability to remain above this key threshold.
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