XRP price prediction for May 6: Bears hold derive, $2.05 is important

The update and price analysis of XRP on May 6 shows that XRP's price action today, March 5, is facing obstacles. According to new derivative data from Coinglass, there is an increasing bearish sentiment surrounding the XRP token. The long/short ratio currently stands at 0.9406, a clear signal that many traders are betting on the price of XRP to decrease rather than increase. This rate leans towards a bearish trend that has lasted nearly two weeks, indicating a continuous lack of strong buying confidence. While the open interest slightly decreased by 1.3%, the derivative trading volume remains high, increasing by 35% to $3.28 billion, indicating that traders are moving in based on the price volatility of XRP. How is the XRP price on the chart trending? Looking at the technical factors, the current price of XRP ( according to CoinMarketCap ) shows that XRP is fluctuating around the $2.14 level, very close to the key support level of $2.05. A break below this level could be the reason for a further decline in the price of XRP, causing a stronger drop, especially when the Relative Strength Index ( RSI ) is currently at 47. The Relative Strength Index of XRP is in the neutral zone, with a slight downward trend, meaning that the momentum is weakening for the price of XRP but has not reached oversold levels yet. This opens the door for further declines before any expected recovery. The MACD line (Moving Average Convergence Divergence) also shows a similarly cautious picture. Both the MACD line and the signal line are nearly flat, oscillating around the zero line, indicating a lack of strong momentum in either direction. A bearish crossover is forming, which could add further selling pressure if confirmed in the upcoming sessions.

However, if market sentiment changes, Fibonacci levels will provide potential upside targets for the price of XRP. Currently, the price is struggling below the $2.29 (Fib 0.236) level. If the price of XRP can reclaim $2.29 and break through the resistance at $2.40 (Fib 0.382) and $2.58 (Fib 0.618), then the possibility of moving to the extended target of $3.32 (Fib 1.618) will become a reality. Does Ripple News provide basic context? Adding to the overall picture of the market, Bloomberg reported that Ripple submitted a proposal worth $4–5 billion to acquire Circle, the issuer of the USDC stablecoin. However, Circle rejected this offer, citing it as undervalued, especially as the company is preparing for an IPO on the New York Stock Exchange (NYSE). Despite achieving a revenue of $1.67 billion in 2024, Circle's net profit was only $156 million, primarily due to 60% of the company's revenue belonging to partners such as Coinbase. According to Ripple's perspective, this acquisition makes sense. Ripple recently launched its own stablecoin, RLUSD, which has reached a market capitalization of 300 million dollars. However, with USDC's dominance of 61 billion dollars in the same institutional stablecoin space, Ripple would benefit from acquiring Circle's infrastructure and user base.