- XRP experienced gains of over 600% to kick off 2025 and looked set to be the year’s leading narrative.
- However, a sharp selloff amid a broader market downturn has seen XRP fall 25% in the past week.
- Analysts believe XRP must test several support and resistance levels before it breaks out of its current consolidation phase.
- A move below US $2 could see XRP fall as low as US $1.30, while growth above US $2.70 could see the project regain its previous momentum.
XRP was the biggest story of the year…until it wasn’t.
The long-tenured digital currency had endured a rough decade following legal action from the Securities and Exchange Commission and stalling growth.
All of this was quickly forgiven upon Donald Trump’s election as US President. As investors speculated the new-look SEC might be a bit more lenient, the theory was XRP’s days engaged in a legal tussle would be over.
It was as though spring had blossomed after a long, cold winter, and the bees were ready to pollinate the hell out of XRP.
XRP catapulted to over US $3.30 (AU $5.25), quintupling in price in a handful of weeks.
As Trump pondered adding XRP to a Strategic Crypto Reserve, while institutions lodged XRP ETFs, it looked like the stars were aligning for the Ripple Labs project.
Related: XRP Ledger Recovers from Network Woes as XRP Tumbles Below $2.40
XRP Cops Beating from Trump Tariff Downturn
XRP has been perhaps the hardest-hit project of the top ten in the recent crypto sell-off.
The token is down 26% over the past seven days, even slumping to under US $2 (AU $3.18) following a network outage.
The dramatic week for XRP has investors jumpy that its time in the sun might be done.
However, let’s remember it was barely two months ago that the token was trading for a mere US $0.60 (AU $0.96). The current drop still has XRP trading around 4x higher than it was in November – pretty impressive returns by anyone’s standards.
So, a correction period after such massive gains is expected, as investors jostle to determine XRP’s value under the Trump administration, while still taking profits.
XRP to Test Key Support and Resistance Levels Before Trend Becomes Clear
None of this really answers the question on everyone’s lips though: What’s next for XRP?
Are we set to see more sideways movement, is US $2 a bargain, or is an even sharper drop on the way?
Obviously, the macroeconomic outlook is pretty shaky for now, and predicting the future really depends on how easily Trump’s fiscal policy spooks (or emboldens) the market.
In a vacuum, some analysts suggest XRP has to test its support and resistance levels again before we get a clear picture of which way the market’s leaning.
The coin saw serious support at US $2 (AU $3.18) – particularly in South Korea – but another dip below this point could lead to some short-term pains.
On the flipside, if XRP can break through its US $2.70 (AU $4.30) ceiling, some serious growth might be on the cards.
Unfortunately, let’s be honest – the crypto market isn’t really in its own hands for now. Once the market settles into Trump’s presidency, things will become a bit clearer and move of its own accord.
But, for the time being, we kinda have to sit and watch.
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