Why is the Ripple (XRP) Price Down Today?

TL;DR

• XRP dropped below $2.20, mirroring a broader crypto market decline.

• However, some analysts remain optimistic, predicting a rally to $5 and beyond if the price holds key support.

XRP Bleeds Heavily

Ripple’s XRP witnessed a substantial resurgence on March 3, with its valuation climbing to just over $3. Nonetheless, in the following days, it dived into red territory, and as of this writing, it trades at approximately $2.18 (per CoinGecko’s data).

Its negative performance coincides with the broader decline of the cryptocurrency sector, whose total market capitalization plummeted below $2.8 trillion. Bitcoin (BTC) briefly slipped to $80,000, while Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and many more leading altcoins have also charted substantial losses. 

The price decrease of Ripple’s native token also aligns with numerous on-chain metrics that have headed south in the past 24 hours. Those include the number of XRP payments from one account to another, the number of active accounts, the number of executed transactions, and others. 

The decline of these metrics typically signals a drop in on-chain activity. It also suggests fewer people are onboarding the ecosystem, potentially indicating weaker adoption or less interest from new users.

Is There Light at the End of the Tunnel?

Contrary to the recent red landscape, numerous industry participants believe XRP has yet to shine during this cycle.

X user Ali Martinez thinks that if the price avoids dropping below “the head-and-shoulders neckline” of just north of $2, it could invalidate the bearish pattern. “This move might trigger a bullish breakout toward $5,” he predicted.

Other market observers who chipped in lately include Dark Defender and EGRAG CRYPTO. The former suggested that XRP successfully broke the multi-year resistance line in November 2024 and tested previous resistance as support. 

“I’ve never seen XRP bullish more than this before,” Dark Defender stated. 

For their part, EGRAG CRYPTO envisioned a price explosion to the $27-$222 range. It is important to note that reaching such high levels would require XRP’s market cap to explode to at least $1.5 trillion. This forecast seems unlikely with the asset’s current capitalization under $130 billion.