XRP has recently tested a crucial support level at $2.12, declining by 4% amidst broader market turmoil. Trading volume surged by 80% to $2.97 billion, indicating heightened activity during the downturn. Derivatives markets revealed a shift in trader strategies, with open interest dropping 3.7% while volume spiked 70%, suggesting a retreat from long positions. This decline aligns with a 5% sector-wide drop, driven by political uncertainties. Despite the current pressures, XRP's resilience at this support level could determine its near-term trajectory. As of June 6, 2025, market participants are closely watching for signs of stabilization or further downside.
XRP Tests Critical Support Amid Market Turmoil
XRP slid 4% to hover near a pivotal $2.12 support level as crypto markets reeled from a broader selloff. Trading volume surged 80% to $2.97 billion, reflecting heightened activity during the downturn. Derivatives markets showed traders rapidly shifting strategies—open interest dipped 3.7% while volume spiked 70%, signaling a flight from long positions.
The asset's decline mirrors a 5% sector-wide drop triggered by political clashes between Elon Musk and former President Trump. Market sentiment soured after Musk criticized federal spending policies, prompting TRUMP to threaten SpaceX contracts and revoke a NASA nomination. Tesla shares plummeted 14% amid the feud, with Musk announcing the retirement of Dragon spacecraft.
Technical indicators now show XRP trading below its 20-day moving average, testing lower Bollinger Band boundaries. The confluence of macroeconomic tensions and technical weakness leaves the digital asset at a decisive inflection point.
XRP Price Under Pressure as Ripple-SEC Legal Deadline Approaches
XRP's downward trajectory persists following Judge Torres' rejection of a joint motion by Ripple and the SEC to vacate her prior ruling in Ripple's favor. The cryptocurrency community now eyes June 16—the deadline for a crucial status report filing in the 2nd Circuit Appeals Court—as a potential catalyst for price recovery.
Legal analyst Fred Rispoli notes no refiling has occurred in district court since Judge Torres' denial of Ripple's request to reduce its $125 million penalty. The upcoming appellate filing could extend litigation by 60 days if either party submits new motions, maintaining uncertainty over XRP's near-term valuation prospects.
U.S. Crypto Law: CLARITY Act Set for Review on June 10
The United States is nearing a pivotal moment in cryptocurrency regulation as the CLARITY Act heads for markup on June 10. This legislative effort seeks to establish a unified framework for digital assets, clarifying jurisdictional boundaries between the SEC and CFTC. The bill has garnered rare bipartisan support, with industry leaders like Ripple's Stuart Alderoty praising its potential to provide regulatory certainty.
Critics remain divided, with some advocating alternative approaches like the Fair Tax Act. The outcome of this review could shape the trajectory of crypto markets, particularly for assets like XRP that have faced regulatory ambiguity. Market participants across major exchanges—from Coinbase to Binance—will be watching closely as this legislative process unfolds.
XRP Rebounds 7% Amid Volatility as Market Awaits ETF Decision
XRP surged 7% to $2.20 after finding support at $2.07, recovering from a sell-off that saw 228.6 million units traded in a single hour—nearly double the daily average. The rebound signals capitulation exhaustion, with buyers stepping in at the $2.10-$2.15 range.
Ripple's regulatory win in Dubai for its RLUSD stablecoin underscores its cross-border payment ambitions. All eyes now turn to Franklin Templeton's spot XRP ETF decision by June 17, a potential catalyst for institutional inflows. Technicals show resilience as XRP holds above its 200-day moving average, though the $2.50-$2.60 resistance zone looms.
