XRP Plunges to New Lows: Is This the Beginning of a Collapse?

The crypto market is experiencing significant instability, and XRP is feeling the effects full force. Indeed, the asset linked to Ripple has plunged by 25 %, reaching an unprecedented low for several weeks. This brutal correction is not limited to XRP. Bitcoin is down by 6.35 %, while Dogecoin registers nearly a 25 % loss. This widespread pullback is explained by an explosive cocktail of economic tensions and heightened speculative movements. Uncertainty surrounding traditional financial markets, particularly in the United States, fuels crypto volatility. In this context, one question remains: is XRP beginning a new descent, or is it a strategic low point for opportunistic investors?

XRP Plummets Brutally : A Market Under Pressure

XRP has gone through a catastrophic day, recording a drop of 25 %. Its price reached $2.28 this Monday, February 3, 2025, a level not observed since January 14. This decline was not limited to the XRP, as the crypto market as a whole has faltered. Bitcoin has lost 6.35 %, while Dogecoin displayed one of the strongest market corrections with a drop of nearly 25 %.

Many observers attribute this drop to an unfavorable macroeconomic context, marked by international trade tensions. Timothy Sykes, a trader and recognized analyst, emphasized on X (formerly Twitter) on February 2, 2025, that “current trade tensions are a disaster for business and the economy.” He also warned that this instability could worsen this Monday when the American stock markets reopen. DonAlt, another influential analyst, shares this concern in a post on the X platform (formerly Twitter) on February 1 and expects a new wave of selling, which would further exacerbate the downward pressure on XRP and the entire crypto market.

An analysis of on-chain data confirms that this drop is not merely a technical adjustment. Thus, the trading volume of XRP has surged, indicating a massive liquidation of leveraged positions. This phenomenon has amplified the decline in prices, with a selling spiral pushing the asset towards critical support levels. In the face of this instability, some investors succumbed to panic, accelerating selling pressure and further weakening the crypto market.

Towards a Worsening or a Rebound ?

As investors closely monitor market developments, several indicators suggest that XRP could continue its decline. Among the risk factors, the growing correlation with traditional markets worries observers. The American stock market, weakened by an uncertain economic climate, may open lower this Monday, which would increase pressure on risky assets, including cryptos. A retreat in major stock indices would reinforce feelings of mistrust and could prompt investors to reduce their exposure to volatile markets like that of XRP.

From a technical standpoint, XRP’s situation remains critical. Chart analysis indicates a lack of solid short-term support. If selling pressure persists, the price could fall to $2.20, a level that would represent an even greater loss for asset holders. Many traders remain attentive to the market’s reaction around these strategic thresholds, which will determine whether a technical rebound can begin or if the downward trend risks amplifying.

Despite these alarming signals, some analysts believe that the worst could be avoided. A stabilization of bitcoin, which remains the benchmark of the crypto market, could play a buffering role and encourage investors to take advantage of the drop to buy at reduced prices. Furthermore, a calming of macroeconomic tensions would help restore a climate of confidence, favoring a quicker bullish reversal than anticipated. Therefore, the evolution of XRP in the coming days will depend on the market’s ability to find a balance point before a potential return of buyers.

In an uncertain and volatile market, caution is more important than ever. XRP, like all cryptos, remains heavily influenced by external factors, whether they are global economic tensions or speculative movements. Thus, the direction its price will take will depend as much on the evolution of traditional financial markets as on the decisions of the major players in the crypto sector. If bitcoin manages to stabilize its price, a ripple effect could support XRP. Conversely, a further deterioration of the economic climate could amplify selling pressure. In this uncertain context, investors must remain vigilant, monitor key technical levels, and adjust their strategy accordingly.