The cryptocurrency market is experiencing one of its most volatile phases of 2025, and Ripple’s XRP is at the center of the storm. After a sharp decline, XRP has dropped below the critical $2.00** threshold, sparking widespread concern among investors and traders. With a **13% drop in the last 24 hours**, XRP is now trading around **$2.15, teetering on the edge of a deeper correction. This sudden downturn raises urgent questions: Is this a temporary setback or the beginning of a prolonged bearish phase? Can XRP recover and reclaim its bullish momentum?
XRP-USD Tumbles Amid Market-Wide Sell-Off
The recent plunge in XRP’s price is not occurring in isolation. The entire crypto market is under pressure, with Bitcoin (BTC) falling below $87,780** and **Ethereum (ETH)** dropping over **11% to $2,385. This broad-based correction has triggered a wave of panic selling, and XRP has been hit particularly hard.
In just one day, XRP’s market capitalization fell to $120.49 billion**, while trading volume surged by **184% to $10.72 billion—a clear sign of heightened market activity driven largely by fear. More alarmingly, over $57.94 million in XRP futures positions were liquidated**, with **$53.58 million belonging to long traders. These forced exits have amplified downward pressure, creating a self-reinforcing cycle of selling.
Bearish Sentiment Deepens as Funding Rates Plummet
One of the most telling indicators of shifting trader sentiment is the funding rate, which reflects the cost of holding leveraged long positions. For XRP, this metric has collapsed from 0.25% per week to just 0.04%, signaling a dramatic loss of bullish conviction. Traders are no longer willing to pay a premium to stay long, indicating growing caution and risk aversion.
This shift aligns with deteriorating macro sentiment across digital assets. As institutional and retail investors alike pull back, liquidity dries up, making it harder for any asset—especially mid-cap altcoins like XRP—to stage a recovery without strong catalysts.
Hidden Bullish Divergence Hints at Potential Reversal
Despite the grim short-term outlook, technical analysis reveals a glimmer of hope. Crypto analyst Javon Marks has identified a hidden bullish divergence on XRP’s daily chart—a pattern that often precedes strong reversals.
Here’s how it works: while XRP’s price has made lower lows, the Relative Strength Index (RSI) has formed higher lows. This disconnect suggests that although prices are falling, the momentum behind the selling is weakening. Historically, such patterns have preceded powerful rallies, especially when supported by strong fundamentals.
If XRP can stabilize above the $2.00 support level**, this divergence could trigger a sharp rebound toward **$2.60, then potentially extend to $3.40** and beyond. Some optimistic projections even suggest a move toward **$3.80 if bullish momentum regains control.
Key Support Levels That Could Determine XRP’s Fate
Technical structure plays a crucial role in determining whether XRP will recover or continue its descent. The current price action hinges on two critical zones:
- $2.00: A psychological and technical support level. A sustained hold above this point keeps the door open for recovery.
- **$1.79**: The 61.8% Fibonacci retracement level. A break below $2.00 could accelerate losses toward this zone.
Should selling pressure intensify and push XRP below $1.79**, the next major support lies at **$1.61—a level that could mark a capitulation point for weak hands.
Additionally, resistance looms overhead:
- $2.60: Initial resistance for any recovery attempt.
- $2.73: The 50-day Simple Moving Average (SMA), now acting as dynamic resistance.
- $3.40: A key breakout target that could confirm a return to bullish dominance.
A confirmed move above $3.40 would invalidate the current bearish structure and reignite investor confidence.
FAQ: Understanding XRP’s Current Market Dynamics
Q: Why did XRP drop below $2?
A: The drop was triggered by a combination of market-wide risk-off sentiment, high leverage in futures markets, and mass liquidations. Weakness in Bitcoin and Ethereum also contributed to the sell-off in altcoins like XRP.
Q: Is XRP still a good investment?
A: It depends on your risk tolerance and time horizon. While short-term volatility is high, XRP’s strong use case in cross-border payments and potential regulatory clarity could support long-term growth.
Q: What would cause XRP to rebound?
A: A successful defense of the $2.00 support level, coupled with positive regulatory developments or increased institutional adoption, could spark a rebound.
Q: Could XRP reach $5 in the future?
A: Yes, but only under favorable conditions—such as a new bull market, approval of a spot XRP ETF, and broader acceptance of Ripple’s On-Demand Liquidity (ODL) solution.
Q: What is hidden bullish divergence?
A: It’s a technical pattern where price makes lower lows but an indicator like RSI makes higher lows, suggesting weakening bearish momentum and potential reversal.
Regulatory Uncertainty Continues to Weigh on XRP
Beyond technicals, regulatory risk remains the elephant in the room for XRP investors. Although Ripple secured a significant legal win in May 2024—when a court ruled that XRP is not a security—the SEC has not fully dropped its case. This lingering uncertainty keeps many institutional investors on the sidelines.
However, there are signs of progress. Multiple firms—including Grayscale, WisdomTree, and CoinShares—have filed applications for spot XRP ETFs, and market prediction platforms like Polymarket currently assign an 80% probability of approval in 2025, especially under a pro-crypto administration.
ETF approval could be a game-changer, unlocking billions in institutional capital and significantly boosting liquidity and demand for XRP.
👉 Stay ahead of regulatory developments with advanced market tracking tools – click to learn more.
Can XRP Reach $5 in the Next Bull Run?
The dream of XRP hitting $5 remains alive—but it hinges on several key factors:
- Accelerated adoption of Ripple’s ODL platform by banks and payment providers.
- Final resolution of the SEC lawsuit with clear regulatory clarity.
- A strong altcoin bull run fueled by macroeconomic tailwinds and ETF inflows.
- Sustained demand from both retail and institutional investors.
Historically, XRP has shown strong performance during altseasons, often outpacing larger-cap cryptos. If the broader market enters a new bull cycle and XRP breaks above **$3.40**, a run toward $5 becomes increasingly plausible.
But first, the asset must prove it can withstand current pressures and rebuild investor confidence.
FAQ: Long-Term Outlook for XRP
Q: What drives XRP’s value?
A: Primarily its utility in cross-border payments via Ripple’s ODL solution, which reduces settlement times and costs for financial institutions.
Q: How does ETF approval impact XRP?
A: A spot ETF would bring regulated exposure to traditional investors, increase liquidity, and lend legitimacy to XRP as an investable asset.
Q: Is now a good time to buy XRP?
A: For risk-tolerant investors, current levels near $2.00 may present a strategic entry point—if they believe in long-term adoption and regulatory resolution.
Final Thoughts: A Make-or-Break Moment for XRP
XRP is at a pivotal juncture. Trading near $2.15, it faces intense pressure from both technical breakdowns and broader market weakness. The next few days will be crucial in determining whether this is a healthy correction or the start of a deeper bearish phase.
To stage a comeback, XRP must:
- Hold above $2.00.
- Reclaim key resistance at $2.60 and $2.73.
- Benefit from positive regulatory news or ETF momentum.
While risks remain high, so do potential rewards for those who understand the underlying fundamentals and long-term vision of Ripple’s technology.
👉 Monitor live price movements and prepare for the next breakout – get started now.
Core Keywords: XRP price, Ripple, XRP-USD, crypto market, bullish divergence, XRP ETF, support levels, market liquidation