XRP Price Prediction: Why did XRP Prices Drop? Can XRP hit $20 in 2025?
Key Points
- The price of XRP dropped by around 9% in the past week.
- The decline was largely due to the massive liquidation in the crypto market, combined with an uncertain macroeconomic environment.
- Currently, XRP is trading around $2.79.
- Amidst the speculations about ETF approval, bullish predictions project reaching $5 or even higher, $20 for XRP, given that the macroeconomic conditions remain favorable.
The price of XRP dropped by around 9% in the past week, and the market sentiment remains neutral to bearish. The price drop is largely attributed to the recent massive 1.6billion crypto market wipeout and macroeconomic uncertainties. Despite the recent price drops, experts are not ruling out the possibility of a breakout for XRP as the ETF approvals are expected in October.
Why did XRP Prices Drop?
The price of XRP dropped by around 9% in the past week. The steep decline was largely experienced due to the massive liquidation in the crypto market, combined with an uncertain macroeconomic environment. The $1.6 billion crypto liquidations in the past few days sent the prices of leading cryptocurrencies plunging, and XRP was no exception. Despite returning to key support levels around $2.8, the Ripple-backed Token struggled to climb up amidst macroeconomic uncertainties.
The higher inflation rate, a weak labour market, and speculations about a possible government shutdown in the U.S have reduced the risk appetite and investor confidence in risky investments such as crypto.
Current Performance of XRP
As of September 27th, the XRP is trading around $2.79. In the past 24 hours, the price ranged from $ 2.71 to $ 2.81. XRP experienced a 0.72% price increase over the past 24 hours. XRP is currently trading above its 200-day simple moving average (SMA) of $ 2.58. The 14-day Relative Strength Index (RSI) stands at 37.75, indicating a neutral market sentiment.
On the other hand, the Fear & Greed Index of 28 suggests that investors are overcautious. The XRP only had 12 green days in the past 30 days. Overall, the market sentiment remains bearish to neutral. However, the XRP currently has a market cap of $ 166.58 billion, offering high liquidity. Besides, the U.S. Securities and Exchange Commission’s ( SEC) recent dropping of the long-standing legal dispute with XRP’s parent company, Ripple, and the launch of the REX-Osprey XRP ETF have generated investor confidence in XRP.
Why Analysts Believe that XRP Could Hit $20?
Notwithstanding the ups and downs of XRP, some crypto analysts are optimistic about XRP hitting new record highs this year. The bullish predictions forecast XRP reaching $5 in the last quarter. Some crypto experts stretch the projections to the range of $10 to $20. Even though $20 may seem too far-fetched for some, crypto analysts are not completely ruling out the scenario.
There are multiple reasons for predicting a breakout for XRP this year. One of the major reasons is the expectations around ETF approvals from the SEC. The ETF approvals are expected in October. The ETFs would attract more institutional investors as they provide a formal, regulated channel to invest in the emerging crypto market.
Ripple has a robust cross-border payment mechanism, remittance, and liquidity management. If financial institutions adopt their payment mechanisms at a faster pace, this would further catalyze the price movements of XRP. Besides, the launch of REX-Osprey XRP ETF and XRP futures would further strengthen the fundamentals around the token, and its effects are gradually expected to consolidate.
Bottom Line
The all-time high XRP reached so far is $ 3.92 back in 2018. To reach new record highs, XRP first needs to overcome the resistance around $3. The $3 has historically been a technical and psychological barrier for the Ripple-backed coin. If the crypto coin could break the resistance, experts predict that it could reach $5 or even higher, given that the macroeconomic indicators remain positive. A macrocomic landscape with a lower interest rate and higher liquidity is favorable for emerging cryptocurrencies.
Moreover, ETF approvals from the SEC and faster institutional adoption of Ripple can trigger a price hike; experts are not excluding the possibility of $10 to $20 this year or in the upcoming years. In spite of the optimism, an uncertain macroeconomic environment and a lack of regulatory clarity remain as causes of concern. The investors are recommended to watch the key developments in the market keenly and exercise caution as the crypto market is highly dynamic.
Also Read: XRP Price Prediction 2025-2030
Crypto & Blockchain Expert