Since almost a full year, Ripple’s XRP has been facing significant obstacles. The asset reached its highest level ever in 2025. It was $3.65. However, the upward trend did not continue. XRP’s downward trend has lasted for almost nine months. It is believed that the lackluster performance of popular cryptocurrency XRP can be attributed to macroeconomic uncertainty and geopolitical conflicts. XRP’s price may yet again correct. Discuss why.
Could XRP face another price drop?
XRP experienced a bullish 2025. Ripple’s settlement with the SEC was the highlight of this year. In December 2020, the financial regulator accused Ripple of selling securities that were not registered. The US Court ruled however that retail purchases of XRP did not violate securities laws. The decision brought XRP a great deal of clarity.
XRP launched its first ETF at the end of 2025. Launching the ETF was another significant milestone in this project. The asset has seen its performance drop over the past few months.
As per Santiment XRP dataXRP’s sentiment reached extreme levels of fear earlier in the week. There is a strong bearish sentiment on social media, as well as a lot of FUD around this asset. Even though historically such events have led to price drops, it is important to take into account another factor.
Binance has seen its liquidity for XRP drop to a level not seen since the year 2020. This could cause violent swings in the price of XRP. The swing will be bullish or negative. Prices could fall in the next few days, as the overall economy remains weak and investors remain cautious.
Please Read This: 3 Things That Make XRP Great, And 3 Things That Don’t
The chances of a rate reduction have also been significantly reduced after the inflation figures came out higher than expected. Investors may be less comfortable investing in high-risk assets such as XRP or other cryptocurrencies due to the US-Iran war.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: watcher.guru
