XRP (Ripple) has recently faced a downward spiral, mirroring a broader contraction in the cryptocurrency market. After peaking at approximately $3.40, XRP has since dropped over 30%, now hovering near critical support levels reminiscent of its previous highs. Over the last week alone, Ripple’s price has plummeted by 20%, raising concerns among investors about the potential for a further decline, with some speculating that XRP could tumble toward the $1 mark.
Here’s Why XRP Price May Slide To $1 Level
XRP’s struggle to preserve its bullish momentum is becoming increasingly apparent as bearish pressures mount. The cryptocurrency currently trades below the $3 mark in a climate of market-wide volatility. Recently, a significant pause in XRP Ledger’s blockchain production heightened investor anxiety, although Ripple’s Chief Technology Officer, David Schwartz, assured the public that the network has since stabilized.
Bullish Momentum Fades
Just days ago, Ripple’s price faced a drastic drop to around $1.80 before experiencing a minor rebound. This sharp decline disrupted the prevailing bullish trend, which has since shifted the balance of power to sellers. The general state of the cryptocurrency market has not helped; Bitcoin slid to $100,000, causing altcoins, including XRP, to follow suit. Currently, the total cryptocurrency market capitalization stands at $3.23 trillion, representing a daily decline of 1.36%.
Falling Trading Volume Signaled Bearish Shift
The diminishing trading volume serves as a clear indicator of a waning bullish trend. After XRP briefly surpassed the $2 mark, recorded volumes failed to maintain upward momentum, consistently posting lower highs. The 24-hour trading volume has recently dipped to $9.88 billion, reflecting an astonishing 50.97% drop. This downward trend in volume has deepened bearish sentiment, hampering efforts by buyers to reclaim market dominance.
CME’s Denial of XRP Futures Dampens Optimism
News earlier this month had momentarily lifted spirits when Ripple CEO Brad Garlinghouse met with former U.S. President Donald Trump, igniting speculation of growing institutional interest in XRP. However, this optimism waned dramatically when the Chicago Mercantile Exchange (CME) announced it would not pursue futures listings for XRP and Solana (SOL). This decision significantly dampened hopes for heightened institutional involvement, contributing to further selling pressure on XRP.
Bearish Divergence Strengthens Downtrend
A bearish divergence identifiable on the weekly chart signals additional downside risk. Compounding these concerns is Ripple’s recent unlocking of 500 million XRP, which raises apprehensions about impending selling pressure. Despite attracting $15 million in inflows since the beginning of 2025, technical indicators suggest that the uptrend is losing steam.
XRP Price Analysis
Currently, XRP trades at around $2.4868, marking a 0.62% decline over the last four hours on Binance. Fluctuations in price show volatility, with recorded low and high points of $2.44 and $2.71, respectively.
From a technical perspective, XRP faces critical support at $2.00 while resistance lies at $3.00. Following a recent steep drop, it briefly tested levels close to $1.50 before bouncing back. Should bearish momentum persist, XRP could see a further 20% decline, approaching the psychologically significant $1.00 support level, which would translate to an alarming 60% drop from current prices.
The Relative Strength Index (RSI) is currently at 38—indicative of bearish momentum but not yet at oversold levels. An RSI recovery above 50 might suggest renewed buying interest. Furthermore, the MACD histogram is negative, with the MACD line below the signal line, reinforcing ongoing bearish trends.
For XRP to embark on a bullish recovery, it must reclaim the $3.00 resistance level, which could pave the way for a venture towards $3.50.
In terms of investor behavior, whale holdings of stablecoins exceeding $5 million have exhibited notable fluctuations, reflecting key movements in XRP’s price. A spike in stablecoin accumulation by significant investors was recorded around mid-September, tapering off by mid-October, coinciding with an upward trend in XRP’s value. However, as stablecoin holdings began to decrease, XRP’s rally was blunted, suggesting that major players were perhaps redistributing or booking profits. Currently, whale stablecoin holdings have surged to 50.12%, indicating that these large investors may be poised for another strategic market move.
Frequently Asked Questions (FAQs)
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What would trigger an XRP recovery?
A recovery hinges on successfully breaching key resistance levels and bolstering market sentiment. -
What are the implications of continued bearish momentum on XRP?
If current trends persist, XRP faces the possibility of testing the $1 support level. - What are the significant price thresholds for XRP?
Critical support resides at $2.00, with notable resistance levels at $3.00 and $3.50.
