The price of Ripple’s XRP token recently experienced a significant decline, dropping to its lowest point in more than a year — levels that haven’t been seen since shortly after the 2024 U.S. presidential election. This downturn has erased much of the gains the digital asset made following that election, which initially sparked optimism among investors in the cryptocurrency space.
Analysts point to a combination of factors contributing to this sharp retreat. The most notable among these is the broader cryptocurrency market slump, led by a downturn in Bitcoin’s price, which has historically set the tone for sentiment across many digital tokens. Bitcoin’s decline has triggered widespread risk aversion among traders and investors, prompting many to reduce their exposure to more volatile assets like XRP.
Over recent sessions, XRP has repeatedly lost value, breaking down through key technical support levels that previously helped stabilize its price. Market data indicates that this weakness has been accompanied by significant outflows, where investors sell off holdings or move funds out of exchange wallets, indicating a prevailing negative sentiment.
XRP’s weekly chart. (TradingView)
Some market observers also suggest that the current environment has little immediate technical support below the recent price levels, meaning the asset could test even lower thresholds if bearish pressure continues. Recovery, they note, would require a return above certain resistance zones that have now taken on greater importance in analytical models.
Despite the recent drop, a handful of community members and long-term holders view the current pricing as a potential accumulation zone, arguing that the broader sector could stabilize and eventually recover. They remain hopeful that macroeconomic shifts and improvements in crypto market dynamics might eventually provide the foundation for a rebound.
In summary, XRP’s plunge to its lowest price since late 2024 reflects broader stress in digital asset markets, driven by a combination of large-cap token declines and weakening investor confidence. Whether this marks the start of a prolonged downturn or simply a temporary correction will depend in part on how wider market conditions evolve in the coming weeks.
Source: Coindesk Edited by Sonarx