CryptoHere’s why the XRP price crashed by ~25% in...

Here’s why the XRP price crashed by ~25% in 2025

-


XRP price dropped by nearly 25% in 2025 despite having its best year so far in terms of regulations and network news.

Summary

  • XRP price dropped by nearly 25% in 2025 and by ~50% from the year-to-date high.
  • The decline happened despite having some major news during the year.
  • Technical analysis suggests that the token will likely continue falling.

Ripple (XRP) token dropped to $1.8485 on Saturday, down by ~50% from its highest point this year. Its crash erased over $50 billion in valuation. 

Top Ripple news in 2025

The XRP token plunged even after the Securities and Exchange Commission (SEC) ended the multi-year lawsuit. The agency, under Gary Gensler, accused the company of selling securities worth $1.33 billion without following the law.

Meanwhile, the same agency approved the listing of several XRP ETFs, which have accumulated over $1.3 billion in inflows since their launch in November. They have been so successful such that they passed Solana (SOL), whose ETFs were approved a few weeks before that. 

The other major Ripple news was the several acquisitions the company made in a bid to boost its ecosystem. It acquired Hidden Road, Rail, Palisade, and GTreasury, and then received a $500 million investment at a $40 billion valuation. 

XRP price also retreated despite the ongoing growth of the Ripple USD stablecoin, which has now accumulated over $1.4 billion in assets. It has become one of the biggest players in the stablecoin industry.

Most recently, Ripple Labs received a banking license that will enable it to offer services in the United States. It will likely provide custody solutions for the RLUSD stablecoin and its portfolio companies like GTreasury and Ripple Prime.

Why did the XRP price crash despite this news?

The main reason why the XRP price crashed despite the important news was the overall performance of the industry. Bitcoin (BTC) and most altcoins were deeply in the red during the year. It dropped by nearly 10%, with the market capitalization of all tokens falling from a peak of $4.2 trillion to the current $2.8 trillion. 

xrp price
XRP price chart | Source: crypto.news

XRP also dropped as investors sold the Donald Trump election news. As the chart shows, the token jumped shortly after Trump was elected in November 2024 as investors anticipated a change in regulations. It soared from a low of $0.493 to a high of $3.39 within weeks.

In most cases, investors buy an asset before a major news event and then sells when it happens as they embrace a new normal.

Technicals have also contributed to the downward momentum. It formed a giant double-top pattern at $3.39 and a neckline at $1.6118. This pattern normally leads to more downside, meaning that it may continue falling in the coming weeks.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Crypto Market News Today, December 26: Trust Wallet Hack Steals $7 Million Amid Bitcoin’s Red December

What’s good today? Well, nothing besides it’s Christmas. Trust Wallet users drained following a big Chrome browser hack...

Bybit CEO claims Chinese users can bypass restrictions with VPN

Bybit’s CEO noted that Chinese users can use a VPN to access the exchange and noted the company...

How to track Santa Claus this Christmas Eve using AI

If you’re a parent with young children, then you’ll probably hear this a lot on Christmas Eve: “Where’s...

Dogecoin price forms scary patterns as DOGE ETF drought continues

Dogecoin price continued its recent downward...

Advertisement

Bitcoin has hit $100,000 and is the world’s 7th largest asset

Bitcoin reached $100,000 and has a market cap of over $2 trillion, putting it ahead of silver, tech...

Must read

Crypto Market News Today, December 26: Trust Wallet Hack Steals $7 Million Amid Bitcoin’s Red December

What’s good today? Well, nothing besides it’s Christmas....

Bybit CEO claims Chinese users can bypass restrictions with VPN

Bybit’s CEO noted that Chinese users can use...

You might also likeRELATED
Recommended to you