XRP News Today: XRP Drops 2.5% to $2.14 Amid Trump Musk Tensions

XRP, the cryptocurrency associated with Ripple, experienced a notable decline, slipping 2.5% to $2.14. This drop occurred amidst a broader selloff in the crypto market, triggered by escalating tensions between President Donald Trump and Tesla CEO Elon Musk. The political standoff has introduced significant uncertainty, prompting investors to exit longer positions in favor of short-term trades. XRP, known for its high liquidity, was particularly affected by this shift in market sentiment.

The market-wide pullback on June 6 resulted in a nearly 5% decrease in the total capitalization of digital assets. This downturn was fueled by the political friction between Trump and Musk, which began on June 5. Musk's criticism of the administration's new federal spending bill was met with retaliation from the Trump administration. The situation intensified when Musk publicly linked Trump to the Jeffrey Epstein case files, calling for his impeachment. Trump responded by stating that Musk had "gone crazy." Following this clash, Tesla shares tumbled, reflecting the broader market's unease.

The political tensions have unnerved investors, who are now grappling with increasing uncertainty around federal policy and business continuity. Cryptocurrencies, already prone to volatility, quickly reflected this shift in sentiment. XRP, with its high liquidity, was among the hardest hit, and current chart patterns suggest further declines if the support at $2.07 fails to hold.

Technical indicators confirm the bearish trend. XRP has slipped below its 20-day moving average and is now trading near the lower Bollinger Band at $2.07. This level has acted as support in the past, and a decisive break could accelerate losses. The relative strength index (RSI) stands just under 40, signaling weak buying momentum without yet reaching oversold territory. The MACD remains negative, adding to bearish pressure, while stochastic RSI and other short-term oscillators show neutral readings. The 10-day through 100-day moving averages are all sloping downward, with the 200-day EMA at $2.08 emerging as the next key level for bulls to defend.

Despite the pullback, investors are closely watching June 16, when a major development is expected in the long-running Ripple v SEC lawsuit. A potential settlement could resolve years of regulatory ambiguity and lift sentiment. In parallel, corporate and institutional demand for XRP is on the rise. VivoPower recently announced it had added $121 million worth of XRP to its treasury, while Webus International said it would allocate $300 million to XRP reserves. Nasdaq-listed Hyperscale Data’s subsidiary, ACG, also plans to acquire up to $10 million worth of XRP by the end of 2025. Additionally, multiple XRP ETF filings await regulatory approval, with decisions from Bitwise, Grayscale, and Franklin Templeton expected soon. A favorable outcome could further legitimize XRP in the eyes of traditional investors and improve demand in the medium term.