XRP Drops 1%: Why Is It Going Down?

XRP XRP/USD is down 1% after a U.S. District Judge rejected a proposed $50 million settlement between Ripple Labs and the U.S. SEC. Despite this legal setback, several crypto analysts see signs of a bullish reversal forming.

Trader Notes: Prominent trader Dark Defender said XRP has completed its final correction wave on the 4-hour chart.

He now anticipates a move toward $2.55, with the ultimate short-term target set at $3.333. His chart marks key levels:

• Support: $2.3502 and $2.2222
• Resistance: $2.58 and $3.3333

Meanwhile, trader Scofield echoed optimism, calling the current structure "great" for bulls.

Another analyst, Cryptoinsightuk, highlighted that XRP's price is unfolding exactly as he predicted.

While noting there are no guarantees, he believes the setup looks solid, and a bullish reaction here could confirm continuation to the upside. "The stage is set," he said, now waiting for confirmation from market momentum.

Statistics: According to Coinglass, XRP saw $17.32 million in total liquidations over the last 24 hours, with $14.85 million from long positions—indicating traders may have overextended their bets too early.

On-chain tracker Whale Alert spotted two massive XRP transactions on May 16:

• 100 million XRP (around $240 million) moved between unknown wallets
• Another 94.3 million XRP (around $232.8 million) transferred, again between undisclosed wallets

Community News: Judge Analisa Torres dismissed the proposed $50 million Ripple-SEC settlement, ruling that both parties failed to meet the legal requirements to amend the prior final judgment.

The original $125M penalty and injunction imposed in August 2024 remain in place—for now. The decision adds more uncertainty to one of crypto's most watched legal showdowns.

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