While Bitcoin soared past $109,000 and major altcoins caught a lift, Ripple’s XRP found itself stuck in neutral—battling legal shadows and a mounting wall of leveraged shorts. With over $320 million stacked in XRP derivatives betting against upward momentum, especially around the $2.50 mark, bearish sentiment is taking center stage, leaving investors uncertain about the token’s near-term fate.
XRP Struggles to Ride the Crypto Rally Wave
On May 21, 2025, XRP was trading just below $2.40, managing a modest 1.5% gain—an underwhelming performance compared to its peers. While coins like Cardano (ADA), Solana (SOL), and Binance Coin (BNB) rallied between 3% and 5%, XRP remained one of the market’s laggards. The tepid price movement suggests that the legal baggage Ripple still carries may be weighing more heavily than ever.
A key contributor to XRP’s muted performance is the sustained pressure in the derivatives market. According to Coinglass, over $319 million in bearish leverage has piled up, with around $165 million clustered specifically at the $2.50 resistance level. This area now represents a significant psychological and technical ceiling. For many traders, it’s the line in the sand between continuation and rejection.
Falling Volume, Lingering Doubts
XRP’s trading volume tells a story of its own. Daily volume has plunged nearly 80% since May 13, when it hit a local high of $11 billion. This sharp decline—down to roughly $2.7 billion—shows a clear cooling in investor interest. Part of this disinterest may stem from the U.S. District Court’s decision to uphold a $125 million fine against Ripple, further entrenching uncertainty around the company’s regulatory future.
Such legal setbacks have made XRP increasingly unattractive compared to Layer-1 assets with cleaner compliance records and broader institutional support. With sentiment dipping, capital rotation away from XRP and toward assets like SOL and BNB seems to be gaining pace.
A Glimmer of Hope in the XRP/BTC Pair
Despite the bearish outlook, not all is doom and gloom. On the technical front, analysts are pointing to a potentially bullish divergence forming in the XRP/BTC pair. According to CryptoInsightUK, the pair has returned to a historically supportive zone around 0.00002206 BTC. Simultaneously, the Relative Strength Index (RSI) has printed a higher low—even as price action continued downward—hinting that bearish pressure might be easing.
If this bullish divergence plays out, a breakout above 0.00002450 BTC could trigger a rally toward the next major resistance at 0.00002800 BTC—a level last tested in March. However, if support at 0.00002180 BTC fails, a fall toward 0.00001900 BTC could invalidate the setup entirely.
Key Levels and What’s Next
In the near term, XRP bulls face an uphill battle. The $2.50 mark in the USD pair remains heavily defended by leveraged shorts. Unless market sentiment shifts or Ripple gains a decisive legal win, XRP may continue to underperform against the broader market.
Still, if the XRP/BTC divergence confirms and broader crypto momentum spills over, we could see a quick change in fortunes. Until then, XRP remains at a technical and psychological crossroads, with both sides of the trade watching for the next big move.
