TLDR
- XRP has fallen 19% over the past week, now trading around $2.16-$2.20
- Technical analysts suggest waiting for a price dip to $1.50-$1.60 range before buying
- On-chain data shows XRP profitability at its lowest level this year, with 6.39 billion fewer tokens in profit
- New wallet creation has dropped to yearly lows with only 4,516 new addresses on a recent day
- Market experts cite broader crypto downturn, geopolitical tensions, and Donald Trump’s executive order as contributing factors
XRP has been caught in a significant market downturn over the past week, dropping 19% in value as bearish sentiment spreads across the cryptocurrency sector. The token is now trading at approximately $2.16, down 7.04% in just 24 hours.
The price decline has pushed XRP closer to the crucial $2 mark. This dip has raised concerns among retail investors who have increasingly favored XRP during this market cycle.
Technical analysts are now warning investors against buying at current prices. One analyst has pointed out that despite XRP’s reputation as a “retail coin” with enthusiastic support from new investors, the best entry point would be if the price drops to the $1.50-$1.60 range.
The current trend points to more downside movement in the short term. Analysts suggest it would be wiser to wait before adding to positions, despite the token’s long-term bullish potential.
XRP reached an all-time high of $3.40 in mid-January 2025. The current price represents a 35% decline over the past two months, reflecting broader weakness in the crypto market.
Several key factors have contributed to XRP’s price drop. Bitcoin has fallen 4%, while many altcoins have seen even steeper declines as the overall crypto market has dropped by 7%.
Geopolitical factors have added pressure to crypto markets. Rising tensions in the U.S.-China trade war have dampened investor sentiment across all financial markets.
Donald Trump’s recent executive order preventing taxpayer funds from purchasing altcoins has added another layer of uncertainty. This policy shift has affected investor confidence in the altcoin market.
On-chain data concerning
On-chain data reveals concerning trends for XRP holders. The amount of XRP held in profit has decreased by 6.39 billion tokens in just one week, marking its lowest level of the year.
This drop in profitability has resulted in more XRP holders sitting at a loss. This situation has increased selling pressure as some investors exit their positions to prevent further losses.
A key factor behind XRP’s poor performance is the notable slowdown in new investor demand. According to data from Santiment, only 4,516 new wallet addresses were created on a recent Sunday to trade XRP.
This figure represents the lowest daily count recorded for 2025. The drop in new investments signals weakening support for the token in the current market environment.
From a technical analysis perspective, XRP has been trading below a descending trendline since its all-time high. This pattern of lower highs indicates ongoing bearish momentum.
Key resistance now sits at $2.93, while support has formed around $1.47. If selling pressure continues, XRP may test this support level, potentially triggering further declines toward $1.50.
Analysts remain long-term optimistic
Despite the short-term bearish outlook, some analysts remain optimistic about XRP’s long-term potential. Several technical analyses project future price surges, with some forecasts placing XRP well into double-digit territory.
One particularly bullish analyst has even predicted a rally to $27 despite the ongoing market downturn. Others have put forward more ambitious targets, including potential triple-digit valuations depending on market conditions and broader adoption.
For now, investors are watching closely to see if XRP can maintain support above the $2 level. If it breaks below this threshold, it could open the possibility of reaching the analyst-recommended accumulation range between $1.50 and $1.60.
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