XRP Plummets as Market Chaos and Political Drama Shake Confidence

XRP's Price Teeters on the Brink

Hang onto your hats, folks! XRP is dancing dangerously close to a critical support level at $2.12, taking a 4% nosedive in the last 24 hours. The whole market's been thrown into turmoil, and XRP's feeling the heat as sentiment and price momentum take a hit.

Trading Frenzy Amid the Selloff

Get this: XRP's 24-hour volume skyrocketed nearly 80% to a whopping $2.97 billion, all thanks to the ongoing selloff. And guess what? Derivatives data from CoinGlass is showing a 70% jump in trading volume while open interest took a 3.7% tumble. It's like traders are bailing on their long positions and diving into short-term plays, especially with the market moving at breakneck speed.

Market Meltdown and Political Fireworks

XRP's latest dip? It's all tied to the broader crypto market's wild ride, which took a nosedive on June 6, shedding nearly 5%. And you won't believe what sparked it: political fireworks between President Donald Trump and Elon Musk that's got investors sweating. The drama kicked off when Musk stepped down from the Department of Government Efficiency and slammed Trump's new federal spending bill.

Trump didn't take it lying down. He yanked a NASA nomination linked to Musk's crew and warned that Musk's businesses might lose their federal contracts. But Musk wasn't done yet. He dropped a bombshell, linking Trump to the Jeffrey Epstein files and calling for his impeachment. Trump fired back, saying Musk had "gone crazy." Tesla shares plummeted over 14%, and Musk announced SpaceX would retire its Dragon spacecraft. Talk about a rollercoaster!

Technical Breakdown: XRP's Chart Tells a Story

Check out the daily chart, and you'll see XRP's price has slipped below the 20-day moving average and is now testing the lower Bollinger Band near $2.07. That's the last line of defense from XRP's latest wild ride. If it breaks, buckle up for deeper losses. The relative strength index is hovering just under 40, showing weak momentum, but it's not in the danger zone yet.

And get this: most moving averages are flashing bearish signals. The price is below the 10-day through to 100-day averages, all trending downward. The only glimmer of hope? The 200-day exponential moving average, hanging around $2.08. That could be a key support if buyers jump in.

The moving average convergence divergence is still in the red, confirming the downtrend. But the Stochastic RSI and other short-term oscillators are sitting on the fence, waiting for a clear direction. And that direction could come sooner than you think.

Eyes on the Horizon: Legal Battles and Corporate Moves

Mark your calendars for June 16, when a major update in the Ripple v. SEC case could shake things up. Investors are on the edge of their seats, hoping for signs of a settlement that could clear up the legal fog and boost sentiment. And that's not all – big firms are showing love for XRP. VivoPower just threw $121 million into XRP for their treasury strategy.

And hold onto your hats: Chinese firm Webus International is setting up a massive $300 million XRP treasury, while ACG, a Nasdaq-listed Hyperscale Data subsidiary, plans to snap up to $10 million worth of XRP by the end of 2025. With corporate demand on the rise and ETF applications from Bitwise, Grayscale, and others waiting in the wings, Franklin Templeton's decision on June 17 could be the game-changer we've been waiting for.