From financemagnates by Damian Chmiel

Let's check why is XRP going down today and what are the XRP price predictions

XRP, one of the biggest cryptocurrencies used by Ripple, tumbled to December lows of $2.04 on Monday, leading cryptocurrency market losses as a strengthening U.S. dollar and year-end profit-taking pressured digital assets.

Let’s examine why XRP is down and what technical analysis suggests about future movements. We’ll also review XRP price predictions from analysts and experts.

XRP Price Is Going Down by 6%

The fourth-largest cryptocurrency by market capitalization has dropped nearly 30% from its December 3 peak of $2.9, with a 6% decline in the past 24 hours alone. The token's trading volume stands at $4.5 billion, indicating significant selling pressure as investors reduce exposure ahead of year-end.

XRP price is currently in a downward correction. Source: CoinMarketCap.com

The decline is also causing liquidations in the leveraged market. Over the past 24 hours, these liquidations totaled $173 million, with the majority being long positions. A significant portion of these liquidations, approximately $7 million in long positions, was attributed to XRP.

The cryptocurrency market's traditional year-end rally hopes have faded, with Bitcoin retreating from its recent all-time high of $108,000 to trade around $93,700, marking a 12.6% weekly decline. Other major cryptocurrencies have followed suit, with Ethereum falling 15.5% to $3,337 and Solana showing a 15.9% weekly slump.

The U.S. Dollar Index's surge to 108.5, its highest level in months, has emerged as a key factor pressuring cryptocurrency valuations. This strengthening dollar has made speculative assets less attractive to investors, particularly affecting dollar-denominated assets like cryptocurrencies.

The USD hasn’t been this strong in over 20 years, which certainly makes it harder for cryptocurrencies denominated in it to sustain growth during an already extended bull run.

XRP Technical Analysis

The current market structure shows XRP trading above key support levels, with immediate resistance at $2.5. Technical analysts have identified $2.0-1.96 as a crucial support level that needs to hold to prevent further decline.

In my view, XRP is still moving within a time-limited pennant chart pattern, with its lower boundary currently aligning with the mentioned psychological support level and December lows. A breakout above this level would not only allow XRP to overcome current resistance dynamically but also provide a chance for a measured upward movement towards the $4 or even $5 level.

XRP price technical analysis and pennant chart pattern. Source: Tradingview.com

This scenario would be invalidated if the price falls below the lower boundary of the pennant and the psychological support at $2. In that case, the bears could regain control, and the chart would return to a downtrend.

XRP price key support and resistance levels

XRP Price Resistance Levels:

XRP Price Predictions: Future Outlook

Despite the current downturn, some analysts maintain a bullish long-term outlook. The January Effect could provide some relief to the market in the coming weeks.

For December 2024, analysts project a minimum price of $1.91 for XRP, with a maximum potential of $2.5. However, the immediate focus remains on defending current support levels to prevent further deterioration in market sentiment.

In January 2025, XRP is projected to trade within a range of $1.35 to $2.12. By February, the price is expected to fluctuate slightly, moving between $1.30 and $2.50. Looking ahead to the end of 2025, if institutional adoption continues to gain momentum, XRP could potentially climb to $5 or higher, reflecting increased market confidence and demand.

For instance, Egrag, a popular analyst with 70,000 followers on X (formerly Twitter), believes that XRP could rise to $50 in 2025.

“The next 10 days are crucial for XRP. From a pure technical analysis perspective (ignoring fundamentals for a moment), this could be the most pivotal price action in XRP’s history,” Egrag commented.

Market participants are also closely watching the incoming Trump administration's potential impact on the crypto sector. The appointment of pro-crypto SEC chairman Paul Atkins and potential regulatory clarity could serve as catalysts for future price recovery.

XRP Price, FAQ

What is the expected price of XRP in 2025?

XRP price projections for 2025 show varying estimates. Conservative forecasts suggest a trading range between $1.35 and $2.50. However, crypto expert Levi Rietveld presents a more optimistic outlook, suggesting XRP could reach $20-23, with an extremely bullish scenario of $70 per coin.

Why is the XRP coin falling?

XRP's recent decline stems from multiple factors. The token has experienced significant selling pressure due to massive liquidations totaling $14.5 million in leveraged long positions. Additionally, Bitcoin's dominance and market focus shift have redirected capital flows away from altcoins. The strengthening U.S. Dollar Index has also pressured cryptocurrency valuations.

Does XRP have a future?

XRP's future appears promising, particularly in the financial technology sector. The platform continues to expand its partnerships across Asia, Africa, and Latin America. The cryptocurrency's role in cross-border payments and growing institutional adoption suggest strong potential for long-term growth. By 2027-2028, XRP could become more integrated into traditional finance and blockchain solutions.

Is XRP ever going to recover?

Technical analysis indicates positive recovery potential despite current bearish pressure. XRP maintains support at key levels, including the 23.6% Fibonacci retracement near $2.33. The token's growing network activity and increasing institutional adoption support the possibility of price recovery. Market experts anticipate potential upward movement once the current correction phase concludes.

Can XRP reach $500?

Reaching $500 appears highly improbable in the near term. Such a valuation would require XRP's market capitalization to exceed $26 trillion, surpassing the combined value of the world's largest companies6. While some analysts project growth potential, more realistic estimates suggest price targets between $15-25 by 2030. Grok AI suggests $500 might only be possible beyond 2030, contingent on widespread global payment adoption.