XRP Price Dips Amid Market Uncertainty: Will $2 Hold?

XRP is facing a critical moment as it hovers near the $2 mark amid market uncertainty. With the FOMC meeting, Trump’s tariff policies, and SEC developments on the horizon, here's what investors should watch.

By Aayushi Dubey May 6, 2025, 13:34 IST

The crypto market has turned red once again, with XRP slipping below key support zones, raising concerns among investors. Despite minor buying activity near the 214 level, XRP’s overall price strength is weakening. This comes at a time when the market is bracing for macro-level catalysts that could dictate the next big move.

What’s Driving the Volatility?

FOMC Meeting and Interest Rate Decision

The upcoming Federal Open Market Committee (FOMC) meeting scheduled for Wednesday is critical. Fed Chair Jerome Powell is expected to announce whether there will be a pause in interest rate hikes. Market analysts currently estimate a 95% chance of a pause, slightly down from 96% yesterday.

If the Fed surprises the market with a hike, expect high volatility, especially across altcoins like XRP.

Trump’s Tariffs Stir Investor Anxiety

Former President Donald Trump has reignited geopolitical tensions with China, proposing 100% tariffs on entertainment imports, including films. His recent interview also touched upon inflation and cryptocurrencies, contributing to market jitteriness.
Historically, such moves have led to sharp dips in XRP, dragging it down as low as 160 in past cycles.

SEC’s Next Roundtable & Market Reactions

The SEC’s newly announced roundtable adds another layer of uncertainty. Traders are largely selling ahead of the FOMC, with short sellers making the most of the dip using leveraged platforms and demo trading accounts.

XRP Price Levels to Watch

Critical Support: $2
Key Zones: 205s, 190s
Resistance Levels: 220 to 236

Should XRP fail to defend $2, expect a move towards $1.90. However, if it consolidates above $2 after retracement, a bullish reversal is likely.

Short-Term Prediction

XRP might pull back to the $2 zone, consolidate, and attempt recovery if no external shock hits. Traders are closely watching this pattern.

XRP vs Market Sentiment: A Long Road to $3?

Despite hitting 236 at the end of April, XRP hasn’t crossed the $3 mark since early 2025. Many holders are growing impatient, with some calling the token a “scam” due to underperformance. But experts compare it to Ethereum’s long grind before its breakout, suggesting a stronger long-term thesis.

A $3 price tag would require XRP to achieve at least a $200 billion market cap, while an ambitious $18 price would imply a $1 trillion valuation—possible, but dependent on global adoption and Ripple’s enterprise success.

Whale Activity & Ripple’s Position

While Bitcoin whales like Michael Saylor are adding more BTC, XRP-specific whale action remains muted. However, Ripple continues to build strong partnerships and expand its real-world utility, which analysts believe could be a game-changer in the next bull cycle.

XRP at a Crossroads

With macro events, regulatory actions, and whale strategies aligning this week, XRP could be facing one of its most pivotal moments in months. Whether it rebounds above $2 or slides further depends on how global events unfold. Long-term believers are holding tight, but short-term traders may find both risk—and opportunity—in the days ahead.