XRP is trading near a crucial support level at $2.12, down 4% in the past 24 hours, as widespread market turmoil weighs on sentiment and price momentum.

XRP’s (XRP) 24-hour volume rose nearly 80% to $2.97 billion, which can be attributed to the ongoing selloff. At the same time, derivatives data from CoinGlass shows a 70% jump in trading volume, while open interest fell by 3.7%. This shift often indicates traders exiting longer positions and rotating into short-term plays, especially during fast-moving markets.

XRP’s latest decline is tied to that of the broader crypto market, which suffered a steep pullback on June 6. It shed nearly 5% as political tensions between President Donald Trump and Elon Musk rattled investor confidence. The clash erupted after Musk stepped down from the Department of Government Efficiency and criticized Trump’s new federal spending bill. 

In response, Trump revoked a NASA nomination tied to Musk’s circle and warned that his businesses could lose federal contracts. The tension grew further when Musk linked Trump to the Jeffrey Epstein files, calling for his impeachment. Trump fired back, saying Musk had “gone crazy.” Tesla shares dropped more than 14%, and Musk said SpaceX would retire its Dragon spacecraft.

Looking at the daily chart, XRP’s price has now slipped below the 20-day moving average and is testing the lower Bollinger Band near $2.07. This area marks the last level of support from XRP’s latest volatility range. A break below could open the way to deeper losses. Although it does not yet indicate extreme conditions, the relative strength index, which is currently just under 40, shows weak momentum. 

The majority of moving averages are still displaying bearish indicators. The price is currently below the 10-day through to 100-day averages, which are trending lower. The only exception is the 200-day exponential moving average, currently near $2.08. This level may act as a key support if buyers step in.

The downtrend is confirmed by the moving average convergence divergence, which is still negative. The Stochastic RSI and other short-term oscillators are neutral, indicating that the market is awaiting a clear direction. That direction could come soon. 

By June 16, a major update in the Ripple v. SEC case is expected. Investors are keeping a close eye out for any indications of a settlement. Any development could reduce legal uncertainty and improve sentiment. There is also growing interest from large firms. VivoPower has committed $121 million to XRP as part of its treasury strategy. 

Chinese firm Webus International has also revealed plans to establish a $300 million XRP treasury,  while ACG, a subsidiary of Nasdaq-listed Hyperscale Data, announced plans to acquire up to $10 million worth of XRP by the end of 2025. In addition to the rising corporate treasury demand, ETF applications from Bitwise, Grayscale, and others are also pending approval. Franklin Templeton’s decision is expected on June 17.