XRP Price Tests $2.00 Support Amid Trade Tensions, Exchange Inflows Spike 55%

XRP, the cryptocurrency associated with Ripple, has experienced significant volatility this week, with its price testing the crucial support level of $2.00. The broader macroeconomic concerns, particularly the renewed trade tensions between the US and China, have had a negative impact on risk assets, including both stocks and cryptocurrencies. This has led to a cautious wait-and-see mode among investors, who are rethinking their positions and moving large amounts of XRP onto exchanges.

One of the most concerning indicators is the spike in exchange inflows. Data shows that XRP inflows have increased from 28 million to over 55 million tokens in just over a week, suggesting that holders may be looking to sell. Additionally, there has been a significant spike in long position liquidations, totaling $5.1 million in the last 24 hours. This indicates that many traders are becoming more defensive, with a negative long-to-short ratio reflecting a market trend that is more cautious than optimistic.

Despite the short-term pressure, there is a longer-term narrative that could benefit Ripple. The potential approval of an XRP ETF is a key factor, with improved market depth and a favorable regulatory outlook compared to other tokens. However, with a new SEC Chair just stepping in, the timeline for such approvals remains uncertain. May 22 is a key date to watch, especially for Grayscale’s filing. For now, the focus is on how XRP handles immediate support levels and whether technical signals suggest a deeper dip or a possible bounce.

On April 16th, 2025, the XRP price began its recent movement within a tight trading range between $2.11 and $2.15 before experiencing a sharp breakout to the upside, which was short-lived. After testing the resistance level near $2.19, the XRP price faced intense selling pressure, forming a descending channel. This downtrend has persisted, with XRP consistently making lower and lower highs. During the decline, the RSI showed multiple overbought conditions near key peaks and dropped into oversold territory several times, suggesting persistent bearish momentum with occasional attempts at recovery. The repeated rejection at the channel’s upper boundary confirms the strength of the ongoing downtrend.

The MACD indicator reinforces this bearish sentiment, with multiple Death Crosses indicating sustained selling pressure, although brief Golden Crosses signaled temporary relief rallies. Currently, XRP has approached the highlighted support zone around $2.05, a level that previously acted as a demand area. The RSI is hovering near 36, indicating XRP is nearing oversold conditions again, which may lead to a short-term bounce if buyers step in at this level. However, the latest Death Cross on the MACD suggests continued caution is warranted.

XRP is currently in a precarious position. The mounting pressure, as indicated by exchange inflows and liquidations, suggests that traders are either playing it safe or exiting their positions. The $2.00 support level is holding, but just barely. On the positive side, the anticipation of a possible spot XRP ETF approval later this year is keeping long-term hopes alive. However, with a new SEC Chair settling in and global markets on shaky ground, the outcome remains uncertain. Technical indicators show that the XRP price is near oversold, but there is no clear signal yet. All eyes are on how the XRP price reacts in the coming days, as this could be the calm before a bounce or the slip before a deeper drop.