Ripple (XRP) Price Plunged 2.7% on Sunday, Bucking the Broader Crypto Market Rally

Ripple (XRP) price plunged 2.7% on Sunday, May 11, bucking the broader crypto market rally, as a fresh legal controversy involving U.S. President Donald Trump triggered a wave of profit-taking.

The price of Ripple (XRP) dropped 2.7% on Sunday, May 11, bucking a broader cryptocurrency market rally, as a fresh legal controversy involving U.S. President Donald Trump triggered a wave of profit-taking.

The pullback erased approximately $360 million in XRP trading market volume on Sunday, reigniting regulatory risks around Ripple, just days after securing a 50 million legal settlement in its long-running case against SEC.

Ripple (XRP) Price Decouples from Market Rally as BTC Holds Above $104,000

The price of Ripple’s XRP token slipped despite Bitcoin continuing its recovery above $104,000 on Sunday. Other layer-1 rivals Ethereum and Solana also went up by 5.4% and 4.8% respectively according to CoinGecko data. But, XRP price slid by 2.7% to reach $2.41 by 09:00 ET, showing a decoupling from the broader crypto market rally.

This shift in price action was catalyzed by renewed legal concerns after reports surfaced that President Trump, who recently called for XRP to be part of a “strategic crypto reserve”, may have been misinformed about U.S. officials standing on Ripple.

Just days after Ripple secured a final $50 million settlement with the SEC in a case that spanned over two years, this perceived political endorsement has inadvertently attracted fresh scrutiny.

The XRP/BTC ratio also fell by 3% to hit its lowest point in two months, highlighting the ongoing decoupling trend and showcasing a bearish divergence in cross-asset sentiment. This metric is often used by institutional investors to gauge their preferences for specific cryptocurrencies.

Why is XRP Price Going Down Today?

The recent downturn in Ripple’s XRP price follows a news-driven rally that began with regulatory clarity. However, the price action has failed to sustain itself above the $2.50 level, an area that has been tested three times in the past 30 days, with each attempt met by significant sell-side pressure.

The latest development in this saga centers around the mention of Ripple in a presidential policy draft as a strategic digital asset for U.S. reserves.

According to sources on Capitol Hill, this inclusion may have been a result of lobbying efforts, but the information used to advise the president regarding the token’s regulatory profile was reportedly misaligned, leading to a backlash from compliance bodies, who are said to have immediately reopened their due diligence reviews.

This fresh wave of uncertainty arrives amid already stretched technical conditions. The XRP Fear and Greed Index underwent a steeper-than-expected slip from 78 to 63 within a 24-hour period, while social sentiment also turned net-negative, as per data from LunarCrush.

Weekly RSI, which had reached an overbought 74 on Friday, also reversed sharply to 65, indicating a loss of upward momentum in the short-term.

If market risk appetite continues without XRP participating, the $2.25 support zone could fail, setting the stage for a retest of the 20-day EMA at $2.09.

What do XRP Derivative Traders Anticipate in the Week Ahead?

A look at XRP derivatives suggests heightened caution among traders heading into the new week. Despite an initial spike in long contracts after the SEC settlement, Sunday’s activity showed a pronounced reversal. Open Interest across major platforms such as Binance and Deribit declined by 4.7%, indicating traders were quickly de-leveraging in anticipation of potential headline volatility.

The funding rate on perpetual futures has also turned neutral, a sharp shift from the 0.03% positive premium observed last Thursday. Without a strong bullish catalyst to restore price stability, XRP is likely to continue consolidating below $2.40 or test the $2.25-$2.09 support range. A break below those levels could invite more aggressive short positioning and trigger a stop-loss cascade across margin platforms.

Until the legal clarity stabilizes, derivative traders appear to be prepared for a more defensive posture as they await either a decisive technical reclaim above $2.50 or further downside to commit to large positions again, which is supported by the $360 million decrease in XRP trading volume on Sunday.

XRP Price Forecast: XRP Holds Above $2.36 Support as Bulls Defend Upside Continuation

The daily candle for XRP on May 11 closed with a sharp -4.32% drop, registering a full-bodied Marubozu Black bar, which is often a technical indicator of bearish control. However, despite this aggressive pullback, XRP has found some short-term support at the $2.36 level, which also happens to be the midline of the Keltner Channel (KC).

This dynamic level, at $2.2366, is critical; maintaining price action above it