The recent feud between U.S. President Donald Trump and his ‘once a close friend,’ tech billionaire Elon Musk, crashed crypto markets on June 5, with XRP sharply falling 6.82% from the daily high. This drastic drop has put XRP’s price at risk of losing the key support level at the $2 mark, which it has been holding onto since December 2024.
While the crypto market was already suffering through uncertainty, this escalating tension between two of the most looked-after Americans has raised severe political and economic concerns on a global scale.
Despite the recent bullish sentiment around XRP, caused by the potential settlement in the Ripple-SEC lawsuit—due on June 16—the current market turmoil has threatened to undo enormous gains in its price. Analysts warn that a break below $2 could trigger a 25% drop, with no significant support until $1.50.
The price of XRP has surged by over 306% since November 2024, and this rally has magnified Ripple’s notable role in the crypto space.
At the time of writing, XRP is trading near $2.15—down 2.24% in the past 24 hours. It fell as low as $2.0711 but managed to bounce from this multi-month low. Notably, the 24-hour trading volume for XRP has surged to a record high of 77%, to $3.46 billion, coinciding with a significant jump in the broader market trading activity.
The clash between Trump and Musk erupted over disagreements regarding the “One Big Beautiful Bill Act,” a proposed spending and tax cut package. Earlier this week, Musk publicly criticized the bill as an “abomination,” prompting Trump to threaten the termination of government contracts with Musk’s companies, including SpaceX and Tesla.
On June 5, the feud intensified when Musk accused Trump of ties to the Jeffrey Epstein files, while Trump claimed Musk was upset over the repeal of electric vehicle tax credits. This public spat, sparking a massive buzz across social media platforms like Truth Social and X, has rattled investors, with it contributing to a 4% plunge and wiping out over $180 billion from the crypto market.
Also read: Tesla Drops 21%, $150B Lost After Musk Criticizes Trump Bill
