XRP’s price has plunged over 10% today, raising concerns among investors. This decline follows a broader downturn in the crypto market, wiping billions off the total market cap.
So, what’s behind XRP’s latest price drop, and what comes next for Ripple’s native token? Let’s break it down.
Why Is XRP Falling?
At the time of writing, XRP trades at $2, with a daily trading volume of $6.93 billion. The cryptocurrency has fluctuated between $2.25 and $1.99 in the past 24 hours, while its Relative Strength Index (RSI) recently entered oversold territory.
XRP had an impressive 500% surge from November to January, peaking at $3.39. However, since then, it has consolidated between $2 and $2.5 and is now showing signs of further weakness.
📉 Key Stats:
✔ 7-day loss: 25%
✔ 30-day loss: 36%
✔ Current trading range: $2 – $2.5
What’s causing this sharp decline? Let’s explore the key factors.
Top Reasons Behind XRP’s Price Drop
1. Broader Crypto Market Sell-Off
The entire crypto market is experiencing a massive downturn. The global crypto market cap has dropped 8% today, losing $560 billion in the past week.
✔ Bitcoin down 8%, slipping below $79K
✔ Ethereum, BNB, Solana, and DOGE all losing around 10%
✔ Declining investor appetite for risk assets
With market-wide weakness, XRP has been unable to escape the selling pressure.
2. Declining Network Activity
Another major reason for XRP’s decline is a sharp drop in network activity.
🔍 Key Findings from Analyst Ali Martinez:
✔ XRP network activity dropped by 50% since December
✔ Active addresses fell from 202,250 to 101,169
Lower transaction volumes and engagement indicate waning demand, which directly impacts XRP’s price performance.
3. Ripple vs. SEC Case Uncertainty
The ongoing Ripple vs. SEC lawsuit is another major factor affecting XRP’s price.
✔ The SEC has dropped multiple crypto lawsuits recently
✔ No official updates on Ripple’s case have dampened investor sentiment
✔ Legal experts anticipate a resolution in the first half of the year
While XRP holders remain hopeful, the uncertainty surrounding the lawsuit continues to weigh on price action.
What’s Next for XRP?
As XRP slides lower, analysts are eyeing key support levels that could determine its next move.
📊 Predictions from Market Experts:
✔ Rose Premium Signals: XRP could drop to $1.2578, a crucial support zone
✔ CasiTrades: XRP’s correction might bottom out at $2, followed by a strong recovery
✔ If XRP holds support, targets could be $3 and $4.22 in the long term
Despite the current drop, long-term sentiment remains optimistic. If XRP finds stability, it could recover and retest previous highs.
Final Thoughts
XRP’s price crash reflects wider market weakness, declining network activity, and regulatory uncertainty. While the short-term outlook remains volatile, analysts believe XRP could rebound if it holds key support levels.
Will XRP recover soon, or is more downside ahead? Let us know your thoughts!
