XRP Price Drops as It Marks Its Fifth Consecutive Session of Losses

output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:output:input: XRP, the native cryptocurrency of the XRP Ledger (XRPL), has been testing the bears, marking its fifth consecutive session of losses. On Tuesday, May 6, 2025, XRP touched a two-week low of $2.08, sliding over 7% (approximately 16 cents) in the past five days, according to TradingView data.

This stellar cryptocurrency has been feeling the heat recently, and investors are searching for answers: Why is XRP going down, and why is the XRP price falling today?

As the price of XRP slides further, signaling a continuation of the sell-off that began last week, technical analysis is picking up on some bearish patterns that could spell more trouble for bullish traders.

The price of XRP is falling today, May 6, hitting an intraday low of $2.08—the lowest level in two weeks—as the sell-off that began last week continues. At the time of writing, XRP is down 1.2%, trading at $2.1041.

Now, several technical indicators are flashing warning signs, and some bearish patterns have been identified, which could contribute to the ongoing decline.

A descending triangle has been spotted on the daily chart, which could suggest a potential 45% drop to $1.20 if the support levels break.

Still, the situation is being supported by a key zone in the $1.77-$1.90 range, which is defined by the lows established since December of last year and was repeatedly tested in February, March, and April. If this support zone is broken, it would confirm that XRP could fall toward the $1.20 area.

“XRP has been a bellwether of its own ecosystem, more so than one for the overall market,” noted Paul Howard, Director at Wincent. “What we will likely see is the asset break away from following BTC. This can be seen in the recent price action in the last 6 months. $XRP tends to be more news and product media-driven narrative than BTC, and therefore a more tactical play for many, based less so on the macro market.”

But why is the XRP price falling? Here are five main reasons.

Declining Network Activity And Liquidity

A main factor behind XRP’s price decline is the significant drop in activity on the XRP Ledger.

Daily active addresses have plummeted to around 30,000, signaling reduced transaction volume and liquidity.

This decline, highlighted by Santiment’s biweekly market update, correlates with lower buying pressure and increased downside risk. Social dominance, a measure of XRP’s discussion versus other cryptos, has also dwindled over three months, indicating less interest from retail traders.

Whale activity adds to the bearish narrative. Large holders have been selling into price strength, a trend that began in Q4 2024 and continues in May 2025. This distribution, plus a divergence between earlier price gains and decreasing institutional support, suggests weakening conviction among big players.

The combination of reduced network engagement and whale selling is a key reason why the XRP price is going down today, as demand struggles to keep pace with supply.

Macroeconomic Uncertainties Weigh On Crypto Markets

The broader cryptocurrency market is under pressure, which contributes to why the price of XRP is falling.

As traders prepare for the upcoming Federal Open Market Committee (FOMC) meeting, which could influence monetary policy and market sentiment, they are noticing that Cardano’s ADA and XRP are sliding.

Investors will be particularly attentive to the latest figures for personal consumption expenditures (PCE) price index for March, which is the Federal Reserve’s preferred inflation gauge.

Moreover, President Donald Trump’s broad tariffs on goods from over 100 countries, announced earlier this year, have sparked concerns about a U.S. economic slowdown.

These tariffs, along with China’s retaliatory measures, are partly to blame for a $1.3 trillion crypto market correction in early April, which saw XRP plummet nearly 45% from $3.20 to $1.80.

This macroeconomic backdrop is a significant driver of why is the XRP price falling, as investors become more cautious amid global uncertainties.

“A falling Coinbase premium and weak funding rates—suggest momentum may be fading,” said Markus Thielen, the CEO of 10x Research. “The Fed remains neutral (meeting on May