XRP continued its decline on May 5, falling 1.27% to $2.1319 as crypto market participants digested a mix of political headwinds and legal uncertainty. This drop followed Sunday’s 1.32% loss, underperforming the broader market’s 0.39% gain, which lifted the total crypto market cap to $2.9 trillion.
Anti-Crypto Rhetoric Weighs on XRP
Investors remain cautious as the SEC prepares for a closed meeting that may include discussions on the agency’s ongoing legal battle with Ripple. The market is particularly focused on whether the SEC will move to withdraw its appeal against Judge Torres’ ruling that XRP programmatic sales were not securities.
Sentiment was further dampened by renewed criticism from Senator Elizabeth Warren, who warned against passing a bipartisan stablecoin bill, citing concerns over crypto corruption. In contrast, President Trump reiterated his support for cryptocurrencies, backing the Bitcoin Act, which aims to see the U.S. acquire 1 million BTC over five years.
Ripple’s Chief Legal Officer called out Senator Warren’s stance, accusing her of politicizing consumer protection to attack digital assets.
XRP Technical Outlook
XRP remains vulnerable below key resistance levels. If selling pressure intensifies, a drop to the $2.10 support is possible. A breakout above $2.50 could open the door to $3.00, with a potential retest of the all-time high at $3.5505.
Bitcoin (BTC) Holds Above $94K Despite Macro Pressures
Bitcoin (BTC) rose 0.41% on May 5 to $94,774, recovering from a session low of $93,639. The market reacted to better-than-expected U.S. ISM Services PMI data, which rose to 51.6 in April from 50.8, while the Prices Index jumped to 65.1, tempering rate-cut hopes.
Despite economic data that suggests a less dovish Fed, demand for BTC remained strong, bolstered by MicroStrategy’s latest purchase of 1,895 BTC worth $180.3 million. This brings their total holdings to 555,450 BTC.
ETF Flows Support BTC
BTC-spot ETFs continued to post positive net inflows, totaling $1.8 billion for the week ending May 2. BlackRock’s IBIT saw $2.48 billion in inflows, reinforcing institutional interest in Bitcoin.
BTC Technical Forecast
Bitcoin trades above both the 50-day and 200-day EMAs, maintaining bullish momentum. Key levels to watch include:
- Resistance: $97,997 (May 2 high), $100,000 psychological level
- Support: $95,000, followed by $90,742 and $86,263
The 14-day RSI at 66.43 suggests more upside before BTC enters overbought territory.
Key Catalysts to Watch This Week:
- Ripple case developments and potential SEC withdrawal of appeal
- Progress on the Bitcoin Act
- ETF market flow trends
- U.S. macroeconomic data and Fed commentary
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