$XRP XRP fell over 5% in the first week of May 2025, dropping to a two-week low of $2.07 on May 10, with trading volume concurrently shrinking by 42% to $12.6 billion.

The technical indicators show that XRP's RSI (Relative Strength Index) is 46.56, below the neutral level of 50, indicating a bearish trend; the Bollinger Bands indicate that the current price ($2.13) is close to the lower band ($2.05), and a break below could lead to further declines.

Ripple obtained a license from the Dubai Financial Services Authority (DFSA) on May 1, which pushed XRP up by 8.3% on the same day, with trading volume surging by 47%, but subsequent overall market corrections narrowed the gains. The number of active addresses on the XRP ledger dropped to 21,000 (down 80% from the December peak), and the decrease in network activity is directly linked to reduced demand.

The market's risk-averse sentiment ahead of the FOMC meeting led to capital flowing out of high-risk assets, putting pressure on XRP along with other altcoins. The new tariff policies from the Trump administration intensified market volatility, causing the total cryptocurrency market cap to shrink by 8% in a single day, with XRP being dragged down by macro risks in the short term.

If it breaks the critical support level of $2, it could trigger panic selling, and the price might drop to $1. If it breaks above $2.29 (Bollinger Bands upper band) or the resistance level of $3, it could initiate a mid-term upward trend. If market sentiment improves and technical indicators confirm the start of the 5th wave, positions can be built in batches; however, one must be cautious of changes in macro policies and regulatory uncertainties.$XRP