Why is XRP price down today?
- Altcoin
Cryptokeeper
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- 9 minutes read
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XRP price is down 3% on May 6, but a rebound above $2.27 could invalidate the bearish thesis and put it back on track toward the important $3 level.
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Key takeaways:
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Ripple’s end-to-quarterly market report fuels uncertainty, impacting XRP price negatively.
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Low open interest in XRP futures signals weak trader confidence.
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XRP price technicals weaken with resistance at $2.27 and declining RSI.
XRP (XRP) fell on May 6, down 3% in the last 24 hours to trade at $2.09, due to numerous factors. Its trading volume has increased by 25% over the same period to $2.5 billion, reinforcing the momentum of the bears.
Let’s look at the factors driving the XRP price down today.
Ripple’s discontinues quarterly reports
On May 5, Ripple revealed plans to end its quarterly XRP markets report, which it has released since 2017. The company attributed the decision to the reports falling short of expectations and the increasing focus on institutional adoption, which demands more comprehensive insights and varied perspectives.
This move has sparked concern among investors since the reports provided transparency into XRP’s market dynamics, including sales, escrow activities, and institutional adoption trends.
Some market participants question whether this shift signals reduced transparency or a strategic pivot toward institutional investors.
Ripple has “announced that the enterprise blockchain company will no longer release its XRP markets reports every quarter,” said X user Shanaka Anslem Perera, adding:
“Is investor confidence going down the drain?”
Another user, Moonchaser, argued that the change is “part of a bigger strategy” to stay private, scale fast, secure infrastructure, and seize the growing Web3 market.
Moonchaser added:
“The shift is strategic. XRP’s future goes beyond any one company – it’s about the entire ecosystem. Decentralisation is key.”
This doesn’t mean the XRP ecosystem is going dark. Quite the opposite.
I believe that Ripple is making space for the XRPL Foundation @XRPLF &/or potentially other entities to take the lead on XRP-centric updates, dev support & community growth.
Decentralisation in action.
5/7
— Moonchaser ☀️🪝 (@Moonchaser2020)
Drop in OI shows sluggish XRP sentiment
XRP open interest (OI) has decreased by 10% to $3.6 billion over the last seven days. This decline in OI signals reduced trader confidence and liquidity, driving down prices.
The drawdown in XRP price has also triggered liquidations on the last day, where long positions valued at $7.98 million were forcibly closed, compared to just $660,000 in shorts. This reflects heightened selling pressure as bullish traders are forced to sell at a loss, further pushing prices lower.
The 24-hour long/short ratio of 0.9131 suggests bullish sentiment is waning.
Related: Price predictions 5/5: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, SUI
XRP price sealed in a downtrend
XRP price remains stuck within a descending triangle, with the multimonth downtrend line acting as the resistance and the flat line at $2.00 as support, indicating a weakening technical setup.
The RSI has dropped from 60 to 43 since April 28, indicating growing bearishness. This will gain momentum if the bears drive the price below the support line at $2.00. The XRP/USDT pair could plunge toward the technical target of the triangle at $1.92.
On the contrary, a break and close above the resistance line should put the bulls back in charge. The pair may then retest the resistance at $2.34, which is also the 100-day SMA. Above that, the next logical move will be toward $3,00, where the sellers are expected to step in.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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