As Memorial Day approaches, XRP is holding steady at $2.31, navigating a period of thinning trading volume typical of holiday weekends. According to a recent analysis from CryptoNews, this decline in institutional activity could create the conditions for a potential price squeeze, with analysts eyeing a possible rally to $2.75 if key support levels hold. Here’s a closer look at the factors driving XRP’s price action and what investors can expect in the near term.[](https://cryptonews.com/news/xrp-price-prediction-xrp-holds-2-31-before-memorial-day-volume-decline-will-reduced-institutional-activity-spark-rally-to-2-75/)
### XRP’s Current Market Position
XRP, the native token of the Ripple Ledger (XRPL), is currently trading at $2.31, maintaining a critical support level despite a broader market pullback. The cryptocurrency has shown resilience, bolstered by recent developments in real-world asset (RWA) tokenization on the XRPL, particularly in the Middle East and North Africa (MENA) region. Ripple’s payments service, licensed by the Dubai Financial Services Authority (DFSA), is onboarding institutions, enhancing XRPL’s appeal for institutional adoption. This initiative marks a significant milestone as the first of its kind in the MENA region, reinforcing XRP’s utility in cross-border payments and asset tokenization.[](https://cryptonews.com/news/xrp-price-prediction-xrp-holds-2-31-before-memorial-day-volume-decline-will-reduced-institutional-activity-spark-rally-to-2-75/)
However, the short-term technical outlook presents challenges. On the 2-hour chart, XRP is forming a descending triangle, a pattern often associated with breakouts—either bullish or bearish. While the price remains above the $2.30 support level, a sustained hold here could set the stage for upward momentum. Conversely, a break below this level could signal a decline toward the 200-day Exponential Moving Average (EMA) at $2.05 or even the April low of $1.61.[](https://cryptonews.com/news/xrp-price-prediction-xrp-holds-2-31-before-memorial-day-volume-decline-will-reduced-institutional-activity-spark-rally-to-2-75/)[](https://www.fxstreet.com/cryptocurrencies/news/ripple-price-forecast-xrp-uptrend-targeting-3-at-risk-amid-declining-network-activity-whale-holdings-202505211215)
### The Impact of Reduced Volume
Holiday periods like Memorial Day often lead to reduced trading volume as institutional players step back, creating thinner liquidity in the market. According to CryptoNews, this dynamic can sometimes act as a catalyst for a price squeeze, where low volume amplifies price movements. If XRP maintains its $2.31 support, the reduced activity could spark a quick bounce to $2.75, a level that aligns with recent resistance points.[](https://cryptonews.com/news/xrp-price-prediction-xrp-holds-2-31-before-memorial-day-volume-decline-will-reduced-institutional-activity-spark-rally-to-2-75/)
This potential rally is supported by broader market sentiment. Posts on X highlight growing optimism around XRP, driven by Ripple’s legal momentum and institutional developments like the launch of XRP futures on the CME exchange. These futures, along with speculation about a spot XRP ETF, are fueling expectations of increased institutional interest, which could drive prices higher in the coming months.[](https://x.com/investorie/status/1924362543646314876)
### Institutional and Regulatory Catalysts
XRP’s price trajectory is closely tied to Ripple’s ongoing developments. The resolution of Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) has been a significant tailwind. In March, the SEC dropped its appeal against a ruling that XRP is not a security when sold to retail investors on public exchanges, removing a major regulatory overhang. While Ripple still faces fines related to institutional sales, this clarity has boosted investor confidence.[](https://finance.yahoo.com/news/xrp-ripple-millionaire-maker-cryptocurrency-111500340.html)
Additionally, the introduction of XRP futures on the CME and the potential approval of a spot XRP ETF by June 2025 are seen as major catalysts. Analysts on X point to the June 17 SEC decision on Franklin Templeton’s ETF application as a potential trigger for a price surge, with some projecting XRP could reach $3.50 or higher by July.[](https://www.usatoday.com/story/money/investing/2025/05/14/reasons-invest-in-xrp-june-2025/83529664007/)
### Risks to the Outlook
Despite the bullish signals, risks remain. Declining network activity and whale holdings, as noted by FXStreet, suggest waning trader interest, which could lead to bearish momentum if the $2.30 support fails. The Relative Strength Index (RSI) at 52 is trending downward, indicating growing bearish pressure. Furthermore, macroeconomic factors, such as U.S. Federal Reserve interest rate decisions, could impact XRP and the broader crypto market. A stronger U.S. dollar typically exerts downward pressure on cryptocurrencies, while anticipated rate cuts could drive investment into risk assets like XRP.[](https://www.fxstreet.com/cryptocurrencies/news/ripple-price-forecast-xrp-uptrend-targeting-3-at-risk-amid-declining-network-activity-whale-holdings-202505211215)[](https://www.fxstreet.com/cryptocurrencies/news/xrp-price-gains-alongside-increase-in-volume-202505220732)
Geopolitical tensions and trade disputes also add volatility, as seen in XRP’s recent 11.9% drop from its high last week. Investors should remain cautious of these external factors, which could disrupt the bullish setup.[](https://finance.yahoo.com/news/why-xrp-solana-led-crypto-215436410.html)
### Price Prediction and Key Levels to Watch
Analysts are cautiously optimistic about XRP’s near-term prospects. If the $2.31 support holds, a rally to $2.75 is plausible, with further upside to $2.80–$3.00 if buying pressure returns and volume validates a breakout above $2.50. On the downside, a break below $2.30 could see XRP test $2.05 or lower, particularly if bearish momentum intensifies.[](https://cryptonews.com/news/xrp-price-prediction-xrp-holds-2-31-before-memorial-day-volume-decline-will-reduced-institutional-activity-spark-rally-to-2-75/)[](https://u.today/xrp-price-to-explode-upwards-ethereum-eth-new-frontier-to-3000-shiba-inu-shib-eyeing-golden-cross)
Longer-term, XRP’s fundamentals remain strong. Ripple’s vision to replace legacy systems like SWIFT with the XRPL, combined with growing adoption in stablecoins and cross-border payments, positions XRP for significant growth. Some analysts, like those at The Motley Fool, project XRP’s market cap could reach $600 billion in five years, driven by its role in the $230 billion stablecoin market and institutional adoption.[](https://www.fool.com/investing/2025/05/16/prediction-xrp-could-be-worth-600-billion-in-5-yea/)
### Conclusion
XRP’s current price action at $2.31 reflects a delicate balance between technical consolidation and fundamental strength. The reduced trading volume over Memorial Day could act as a springboard for a rally to $2.75, provided key support levels hold. With institutional developments, regulatory clarity, and potential ETF approvals on the horizon, XRP remains a compelling asset for investors. However, caution is warranted due to technical risks and macroeconomic uncertainties. As always, investors should stay informed and monitor critical levels to navigate XRP’s volatile path.[](https://cryptonews.com/news/xrp-price-prediction-xrp-holds-2-31-before-memorial-day-volume-decline-will-reduced-institutional-activity-spark-rally-to-2-75/)