XRP is experiencing new selling pressure as recent price action shows signs of weakening momentum near the key support area. The $2.30 level has emerged as an important area that traders are closely watching. A break below this point could lead to a further downtrend towards $2.
Technical Pressure Increases As Momentum Slows
According to an analysis prepared by Bitunix, XRP has seen a strong recovery from $2.30 to $2.40, forming what is described as a "V-shaped recovery." However, this move is currently facing resistance near the $2.40 and $2.45 levels. The asset has not maintained strength above the 100-hour simple moving average and is now trading below this line.
The RSI has dropped below 50, indicating reduced buying pressure. At the same time, the MACD has moved deeper into the bearish territory, signaling caution among traders. XRP hit a low of $2.2994 on May 17 before stabilizing.
Currently, the price is trading near $2.39, with the trend line at $2.355 serving as a short-term support level. If the price breaks below this level, the next support will be seen near $2.32. A close below $2.30 could pave the way for a move towards $2.20 or even $2.12.
Legal Uncertainty And Market Sentiment Impact XRP
According to attorney John E. Deaton, the legal uncertainty from the ongoing SEC lawsuit continues to affect investor sentiment. In his latest statement, Deaton noted that institutional demand may remain low until the SEC provides more clarity.
Meanwhile, data from Coinglass shows that open interest for XRP derivatives has decreased to $4.75 billion, while trading volume has dropped by more than 29%. This decline indicates waning interest from leveraged traders.
The long/short ratio of Binance has fallen below 1.0, confirming a broader bearish stance. Therefore, failing to hold the $2.30 support level could cause XRP to retest lower levels. The short-term outlook for XRP will depend on its ability to maintain above this critical threshold.