In May 2025, XRP faced a resurgence of bearish pressure, falling more than 5% just in the past week. As a result, the token's price dropped to a two-week low of $2.07. Crypto analyst Ali Martines noted that the TD Sequential indicator on the 3-day chart for XRP signaled a sell, hinting at further price correction.
Apparently, at least five factors contribute to the current decline of XRP. 1. Decline in activity in the XRP network The main reason for the ongoing weakness in XRP's price may be a sharp decrease in activity in the XRP network. The number of daily active addresses shrank to 21,000, which is a sharp decline compared to December's maxima of 108,000. The deterioration in recipients coincided with smaller transaction amounts and a decrease in liquidity in the network. 2. ETF delays undermine investor confidence The delay in the decision by the U.S. Securities and Exchange Commission (SEC) regarding Franklin Templeton's proposal for a spot XRP ETF has also affected investor confidence. The regulator postponed the deadline to June 17, 2025. This postponement delays any influx of institutional capital; however, according to Polymarket data, the chances of approval for a spot XRP ETF in 2025 are a significant 77%.
3. The decline in social activity Over the past three months, discussions about XRP in social media have noticeably decreased compared to other leading cryptocurrencies, as indicated in a two-week report by Santiment. 4. Market pressure ahead of the FOMC meeting Macroeconomic uncertainty ahead of the FOMC (Federal Open Market Committee) meeting has led traders to shy away from risky assets. For XRP, as well as many other altcoins, this situation has had a negative impact. The FOMC meeting is taking place today and may affect not only the price of Bitcoin (BTC) but the entire sector of digital assets. 5. Ripple's attention to RLUSD raises doubts about XRP The launch of Ripple's stablecoin RLUSD, backed by US dollars, has had unforeseen consequences. Given that RLUSD quickly gained popularity as a currency for cross-border transactions, XRP's similar role has come into question. Cryptocurrency market participants have expressed concerns that RLUSD may push XRP to the background.#CryptoAdoption $XRP
