>XRP is facing significant heavy sell pressure at the $2.50 resistance level. This is all happening despite Ripple having reached a $50 million victory lap deal with the U.S. SEC. Even so, XRP’s price holds steady above $2.44 as of May 11th. With the unexpected gain limited to a maximum of 5% on Saturday, May 11 overall, the cryptocurrency remains in consolidation below the $2.5 mark. The market sentiment, as seen on the XRP-specific Fear and Greed Index, is at 78, which represents “Greed” territory.

Resistance at $2.50

XRP has just failed the $2.50 ceiling multiple times in the past month, and each attempt to break through has met with mounting sell pressure. This level seems to be a key threshold as a barrier for additional upward progress. For now, despite these drawbacks, XRP actually holds up relatively well and continues to hold strong above its 20-day average.

Relative trading volumes for XRP continues to be elevated – weekly average volumes are currently trending 38% above the 30-day average. This points to significant underlying demand and momentum in the market, despite the price still having difficulty moving past overhead resistance. Bears are expected to push prices back down to the $2.50 psychological level.

If bulls can close above the 2.50 level, their next target would be at 2.75. Our breakout candle from May 9 is still holding up well. If the demand stays this strong, we are in for a drumroll, please…

Market Sentiment and Trade Winds

Positive sentiment from the SEC settlement and signals of a softening stance on trade deals may trigger another leg-up in Ripple's price in the coming sessions. Better trade relations might ease the inflation worries and improve risk appetite, which would benefit more speculative assets like XRP.

On Saturday, XRP was up just 5%. This is still behind the impressive performance of other major cryptocurrencies such as Ethereum and Cardano. This point, while bullish in overall implications, points to XRP’s current lack of market leadership as a growing asset.

If XRP manages to find support and consolidate above its current level, $3 could begin to look like a more attainable target. This situation is even more likely if trade negotiations continue on an encouraging path or if capital rotation from Bitcoin speeds up.

Bearish Risks

Potential bearish risks might resurface if XRP price drops under $2.240. A drop below this level would negate the current channel breakout and may accelerate further declines.

XRP found it difficult to maintain momentum against competing Layer-1 tokens after the SEC resolution. This disturbing trend is symptomatic of deeper fears and unknowns in the marketplace. This change in performance illustrates the uphill battle that XRP is currently facing in building positive momentum.

Any significant negative news or market corrections could trigger a sell-off, pushing the price down to test lower support levels. Any investor looking to identify the possibility of additional downside risk would do well to pay particular attention to these levels.