On May 16, Ripple (XRP) extended its recent decline, with the price slipping to $2.41—down from its earlier high of $2.65. The drop reflects broader uncertainty across the crypto market, as traders weigh mixed signals and network fundamentals continue to show signs of weakening. This latest movement has added to concerns about short-term momentum for XRP, which had previously gained traction during a wider market upswing.
Despite the pullback, analysts remain cautiously optimistic about XRP’s medium-term outlook. The current dip may simply be a consolidation phase, potentially setting the stage for another upward move. If buyer interest returns and broader sentiment improves, XRP could still push toward the key $3.00 resistance level—a price point seen as both a psychological milestone and a test of bullish strength.
XRP Cools Off Following Recent Surge
XRP saw a big shift in momentum after reaching a high of $2.65 earlier in the week. As bullish energy across the market started to wane, it slipped to approximately $2.41. The drop follows a two-week upswing that started near the $2.12 level, driven by growing optimism within the Ripple community and a broader wave of positivity in the crypto space.
XRP trades around $2.41 at the time of writing, marking a 3.60% decrease over the past 24 hours. While the asset had recently shown strong upward momentum, the latest price movement signals a potential cooling period as investors reassess market conditions.
XRP Network Activity Plunges
Blockchain metrics are beginning to reflect signs of fading momentum. The XRP Ledger has experienced a sharp drop in activity, with the number of newly created addresses falling steeply—from nearly 16,000 in January to approximately 3,400 as of May 7. This 78% decline in new wallet creation suggests a notable decrease in user participation and network engagement. Such a downturn may point to waning demand and could present a challenge for XRP in maintaining bullish traction, potentially limiting its upside in the short term.
XRP Liquidations Highlight Market Cooling
According to CoinGlass data, the XRP derivatives market saw liquidations totaling nearly $10.14 million in the past 24 hours, with long positions accounting for approximately $8.44 million. This shows that many traders expecting the price to continue rising were caught off guard by the recent price drop.
Trading Activity Dips But Bullish Trend Holds
Open interest (OI) fell slightly by 1% to $5.41 billion, while trading volume dropped significantly from $19.5 million earlier this week to $8.69 million. This decrease in speculative activity could increase price volatility as traders close leveraged positions and rebalance risk. However, XRP remains comfortably above key technical support levels, including the 50-day, 100-day, and 200-day exponential moving averages (EMAs), indicating the overall bullish trend is still intact despite recent fluctuations.
XRP’s Legal Battle Continues to Influence Market Sentiment
XRP’s story goes beyond price fluctuations, as the ongoing legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) remains a key factor in how the market views the cryptocurrency. Ripple has won several important court decisions, including one that ruled XRP is not a security when traded on secondary markets.
Despite these wins, the case is still active, and many investors are watching closely because the final outcome could have a major impact on XRP’s price and its legal status in the United States.
Meanwhile, Ripple’s CEO Brad Garlinghouse has hinted that the company might consider an initial public offering (IPO) once the lawsuit is settled. This announcement has added more attention to the case and increased speculation within the crypto community about what the future holds for Ripple and XRP.
Could XRP Be Setting Up for a Big Move?
Although XRP has experienced a slight dip recently, it still holds strong above important support zones. Technical signals indicate that the bulls are still in control while buying momentum has slowed. Should XRP manage to break back above the $2.60 level and maintain upward momentum, reaching the $3.00 mark remains a realistic possibility.
However, caution is warranted as shrinking network activity and increased liquidations raise concerns. Traders are advised to keep a close eye on both technical trends and broader factors—such as the ongoing Ripple lawsuit and recent geopolitical developments, including trade agreements between major players like the U.S. and China—that continue to influence market dynamics.
Final Thoughts
XRP’s recent drop to $2.41 shows ongoing uncertainty as market momentum slows and network activity weakens. While short-term challenges like fewer new users and more liquidations suggest caution, XRP is still supported by important technical levels and could bounce back.
The ongoing legal battle between Ripple and the SEC continues to influence how investors feel about XRP, adding extra uncertainty. Going forward, XRP’s chances for growth will depend on renewed buying interest, improved market mood, and updates on legal and global issues. Traders should stay careful and watchful as XRP moves through this important period.
