XRP news today: XRP Price Drops 10% After Ripple Unlocks $2.2 Billion

The price of XRP has been on a downward trajectory over the past few months, driven by several key factors. One significant issue is bearish divergence, where the price of XRP increased without sufficient buying support, leading to a weak trend that continues to impact its value. Currently, XRP is moving within a downward channel, with occasional small price increases failing to reverse the overall negative trend.

Key price levels to monitor include resistance levels, where the price may struggle to move higher, and support levels, where the price might stop falling or bounce back. For XRP to reverse its downward trend, it would need to break above these resistance levels and show stronger signs of upward movement. The resistance levels to watch are $2.33 – $2.35, $2.45 – $2.50, and $2.60, while the support levels are $2.16, $2.05, and $1.80.

On May 3, 2025, Ripple unlocked a massive 1 billion XRP, worth approximately $2.2 billion. This event was unusual because Ripple typically releases 1 billion XRP on the 1st of every month, but this time, the release occurred two days late. The unlocked XRP was divided into three large amounts: 500 million XRP worth $1.1 billion, 300 million XRP worth $660 million, and 200 million XRP worth $440 million. While Ripple has unlocked XRP before, the delay in this instance caused concern among investors. The increased supply of XRP in the market can sometimes lead to a price drop, as seen in this case.

The recent decline in XRP's price can also be attributed to regulatory uncertainty. The ongoing legal battles between Ripple and the Securities and Exchange Commission (SEC) have created an atmosphere of uncertainty, causing investors to be cautious. The suspension of the SEC's appeal against Ripple has opened up opportunities for American banking alliances and the launch of Ripple's RLUSD stablecoin, which has achieved a market capitalization above $300 million. However, the ongoing legal tensions have kept investors on edge, contributing to the price decline.

Ask Aime: "Is XRP's price drop a sign of trouble ahead?"

Market fragility has been exposed by recent liquidation events, where a significant imbalance between long and short positions has led to forced sell-offs. This has amplified market volatility and raised concerns about the stability of XRP's price. The extreme leverage flush has revealed dangerous market conditions, with numerous existing long positions facing immediate compulsory buy-outs. This has triggered market warnings that investors should pay close attention to.

The short-term outlook for XRP appears increasingly bearish, with the price targeting approximately $2.12, representing a concerning drop from current levels. The recent liquidation event has caused futures open interest to decrease by about 4%, indicating that traders are reassessing risk or exiting positions amid uncertainty. The market shows extremely dangerous conditions through its 1000% deviation from normal liquidation standards, which should receive proper attention from investors.

Despite the bearish price projection, there are fundamental strengths that could uphold XRP in the long term. The suspension of the SEC's appeal against Ripple has created opportunities for American banking alliances, and the launch of Ripple's RLUSD stablecoin has achieved significant market capitalization. Different spot ETF applications possess an estimated 80% chance of success, which could trigger catalyst effects. However, the recent market liquidations have caused abnormal market movements, making traditional analysis unreliable. Traders need to exercise additional care when making predictions about XRP based on past data.

The upcoming decisive date of May 5 brings various essential market elements that require thorough observation. The current market price of $2.22 serves as a critical mental point which will guide immediate market movements. The price falling below $2.15 could intensify sales while maintaining above $2.25 might indicate selling pressure has become exhausted. The XRP price projection for May 5 faces complications because of the recent market liquidations that have caused abnormal market movements. Market stability in the crypto sector makes traditional analysis unreliable so traders need to exercise additional care when they make predictions about XRP for 2025 based on past data.