The cryptocurrency market experienced a significant setback as former President Donald Trump’s tariff war and Ripple’s release of 400 million XRP, valued at approximately $1.136 billion, sent XRP prices plunging.
Within just 24 hours, the XRP price dropped by 24.6%, deepening its overall decline to over 15% during this broader market crash. Analysts now warn that XRP could dip further, with projections suggesting a fall to $1.90.
Historical February Struggles: A Pattern Repeating?
XRP’s steep decline has raised concerns about its historical performance in February. Data from Cryptorank reveals that XRP has averaged a -3.00% return during this month, with only four positive Februarys since 2014. Although XRP saw a remarkable 26.3% gain in February 2022, the general trend suggests persistent volatility and challenges ahead.
Can XRP Recover? Key Factors to Monitor
Despite the bearish trend, some analysts remain cautiously optimistic. XRP’s potential recovery could hinge on several key factors:
- Speculation about an XRP ETF approval in 2025
- The resolution of the Ripple vs. SEC lawsuit
- A potential IPO launch by Ripple
Crypto analyst EGRAG CRYPTO predicts that XRP could dip to $2.30, with $1.90 identified as a crucial support level. He highlights the 21-day Exponential Moving Average (EMA) as an essential indicator during this downturn. While the outlook is currently bearish, this pullback might present a buying opportunity for long-term investors.
Diverging Analyst Predictions
Not all analysts share the same optimism. Crypto expert Ali Martinez relies on the TD Sequential indicator, which signaled a sell-off over a week ago. His analysis suggests the possibility of further losses. The key lies in XRP’s ability to hold above the $2.30 support level; failure to do so could lead to a deeper sell-off if it breaches $1.90.
Interestingly, despite XRP’s 15% drop to $2.43, its Relative Strength Index (RSI) stands at 34, hinting at a potential for bullish momentum if support levels hold.
Broader Market Pressures Intensify
External market forces are adding to XRP’s struggles. XRP Futures Open Interest has plummeted by 35%, reflecting bearish sentiment among traders. Additionally, global markets are under pressure as Trump delays crypto regulations and enforces aggressive tariff policies, creating further uncertainty.
What Lies Ahead for XRP?
Experts are divided on XRP’s future. Some predict a potential rally back to $4, while others foresee a prolonged downturn due to the unresolved Ripple vs. SEC case. Despite the recent sell-off, many analysts believe in XRP’s strong long-term growth potential, especially if legal and regulatory hurdles are cleared.
Conclusion
XRP’s recent decline highlights the volatile nature of the crypto market, influenced by both internal events like Ripple’s token unlock and external factors such as global economic policies. While short-term challenges persist, XRP’s long-term outlook remains promising, contingent on regulatory developments and market recovery. Investors should remain vigilant, focusing on key support levels and broader market trends.
Reece Conner
Reece Conner is a leading expert in the cryptocurrency industry, known for delivering cutting-edge insights and practical guidance to both newcomers and seasoned investors. With a background in finance and technology, Conner bridges the gap between complex blockchain concepts and real-world applications.