Ripple’s native token, XRP, dropped 2% on May 18, 2026, as traders sold off holdings following a failed attempt to maintain a position above the $1.42 resistance level. The asset fell from a price of $1.4138 to $1.3865 after a significant spike in selling pressure during the May 17, 23:00 UTC session. During that specific window, 144.3 million in trading volume pushed the token down from the $1.42 area as investors moved to lock in profits.
The retracement appears to be a “buy the rumor, sell the news” reaction following the recent legislative progress of the CLARITY Act. While the token has faced a 6% decline over the last week from a high of $1.47, institutional interest remains a visible factor in the market. There are now seven spot XRP ETFs live, which hold over $1.2 billion in combined assets after recording approximately $1.44 billion in cumulative inflows. Some analysts believe XRP momentum restarts could be possible if these inflows continue to provide a foundation for price stability.
Market data indicates that XRP currently trades at a roughly 62% discount to its July 2025 all-time high of $3.65. Despite the recent price dip, on-chain activity remains active. On May 15, active addresses reached 48,453 and new wallet creations hit 3,317, showing continued engagement with the network even as price volatility persists. This activity occurs while other large-cap assets like XRP face selling pressure during broader market shifts.
Traders hit structural supply wall at higher levels
The primary hurdle for an XRP recovery remains a dense structural supply wall located between $1.45 and $1.47. Research shows that approximately 1.24 billion XRP tokens are held by investors who entered the market at these price points. These holders often look for exit opportunities as prices approach their entry level, creating persistent overhead resistance that speculators must absorb to move higher.
Large-scale holders, often referred to as whales, have surprisingly increased their concentration during this period. Wallets holding at least 10 million XRP now control 45.83 billion tokens, which is the highest level since 2020. This indicates that while short-term traders are taking profits at the $1.42 level, the largest investors in the ecosystem are not liquidating their positions en masse.
The daily trading range on May 18 settled between $1.3795 and $1.3965. Technical experts are closely watching the $1.38 support level; a failure to hold this mark could open a path toward $1.30. Conversely, bulls need to decisively clear the $1.42 resistance zone to negate the current bearish momentum. At an current price of $1.38, the market cap for XRP stands at $85.34 billion, with a fully diluted valuation of $138.02 billion.
CLARITY Act advancement and projected ETF impact
The political backdrop remains a major influence on price action following the Senate Banking Committee’s 15-9 vote to advance the CLARITY Act on May 14. This legislative movement has introduced new price targets among financial institutions. Geoffrey Kendrick, an analyst at Standard Chartered, projected that the committee’s advancement of the act could eventually unlock between $4 billion and $8 billion in additional inflows for XRP ETFs.
Current investment data shows that this institutional appetite is already manifesting. In April 2026 alone, spot XRP ETFs saw $81.63 million in net inflows. Traders are comparing these long-term institutional numbers against short-term technical barriers. While the immediate 2% drop on May 18 was driven by aggressive selling at $1.42, the growing assets under management in ETFs suggest a shift in the token’s demand profile.
As the market processes the latest round of profit-taking, the focus shifts to whether the current accumulation by large wallets and ETF providers can overcome the 1.24 billion token supply wall. Until XRP can break and hold above the $1.47 mark, it remains susceptible to the types of sharp corrections seen during the May 17 late-night session.