The XRP Price Decline in 2025

The XRP price has transitioned from being one of Q4’s best-performing cryptocurrencies to a significant laggard in 2025. Ripple’s price fell from $3.42 in January to $2.20 as most cryptocurrencies declined. This article examines if XRP can recover after finding support at $1.96 last week.

XRP Crashes Despite Positive Developments

The ongoing decline of XRP occurred despite notable positive news for Ripple.

First, the XRP price drop coincided with increasing chances of a spot Ripple ETF being approved. Companies like 21Shares, Canary, and Grayscale have applied for such an ETF following XRP’s rising popularity.

The SEC may approve the fund, similar to their recent approval of a spot Ethereum fund. If approved, an XRP ETF could lead to higher inflows in the short term.

Second, the XRP Ledger network has seen growth, with increased developer interest recently. Notable tokens on the network include Ripple USD (RLUSD), Sologenic, Coreum, and XRP Army. The Crypto Trading Fund (CTF) token has surged by nearly 20% in the past week, while RLUSD’s market cap rose to $132 million with daily trading volumes exceeding $100 million.

Third, there’s a growing likelihood that the SEC will soon resolve its litigation against Ripple Labs. An appeal was filed last year following Ripple’s partial victory in a case accusing it of selling unregistered securities. Although Ripple was fined $250 million, the judge affirmed that XRP was not a security. The SEC has recently dropped charges against other crypto companies, increasing speculation it may conclude its case against Ripple.

Reasons for Ripple’s Price Decline

Three main factors contribute to XRP’s price decline amid positive developments:

1. Softness in the Crypto Industry: Bitcoin and many altcoins have experienced significant declines, creating a market cap of $2.7 trillion.
2. Fear in the Crypto Market: With the fear and greed index dropping to 18, investors often remain on the sidelines during market fear.

XRP Price Technical Analysis

The XRP price has also declined for technical reasons. The coin has shifted from the Wyckoff Theory’s markup phase into its distribution phase, characterized by indecisive investor sentiment.

Additionally, XRP has formed a head and shoulders chart pattern, signaling a bearish outlook. This pattern consists of a head, two shoulders, and a neckline, with XRP trading below the 50-day moving average. As a result, the price may continue to slide, targeting a 61.8% retracement level at $1.6215.

The post XRP price prediction: Is Ripple a good buy in March? appeared first on Invezz.