XRP Price Forecast – Why XRP Could Drop Below $2 Soon

Highlights:

• XRP is in a downtrend as selloffs hit the broader cryptocurrency market
• XRP has lost critical support levels in today’s selloff
• Continuation of selloff could push the price below $2 soon

XRP, as with most other cryptocurrencies, dropped sharply during today’s slump. It trades at $2.11 after losing 14.30% of its value in the last 24 hours. The primary driver of the decline has been Bitcoin’s drop below $90,000, which resulted in panic selling across the market. Bitcoin is currently in a selloff, which has led many altcoins like XRP to follow its downfall. 

XRP Breaches Critical Support Levels

The price decline of XRP has been pronounced, with the cryptocurrency losing over 10% in hours. This decline has been swift enough to break key support levels, which suggests further decline could be on the way. The market so far has been and is expected to remain bearish for the foreseeable future, which is making investors increasingly cautious.

XRP’s price correction has also coincided with a sharp increase in volumes. In the last 24 hours, XRP trading volumes have shot up 186% to $11 billion. This indicates traders closing their positions, which is deepening the downtrend. A sustained selling pressure scenario could result in XRP suffering greater losses as investors wait to see if support levels can trigger a reversal.

XRP Comeback History Fuels Optimism

While XRP is in a downturn, past performance demonstrates some hope to make a remarkable comeback. Historically, XRP has undergone several sell-offs only to recover and rally. While the price could see more short-term downside, many are waiting for the next bullish move pending the reclamation of significant technical levels.

Ongoing SEC litigation on XRP Investors’ Radar

Besides broader market factors, Ripple’s case with the SEC is another important price determinant for XRP. The legal conflict between Ripple and the U.S. Securities and Exchanges Commission (SEC) remains a significant source of uncertainty.

Investors are now particularly focused on whether the SEC will pursue an appeal against the Programmatic Sales ruling of XRP. The case became more intriguing when the SEC dropped its lawsuit against Coinbase, which started speculation that the SEC might do the same in the Ripple case.

An OIG Investigation Could Boost XRP Price

The potential release of an Office of Inspector General (OIG) report on conflicts of interest related to crypto within the SEC may also affect XRP’s status. It has been rumored that former SEC Chair Gary Gensler withheld these documents as he exited his position, which has been speculated to suggest bias against Ripple. Should the report show significant evidence of conflicts of interest, the SEC will likely come under pressure to abandon the appeal, which will be favorable for XRP.

Possible XRP ETFs Could Drive Optimism

The anticipated approval of XRP spot ETFs will likely stimulate future growth. Some large players, such as Grayscale, WisdomTree, CoinShares, and others, have shown a willingness to issue XRP ETPs. If approved, these products may increase institutional demand for XRP and trigger a rally of $5 or more. 

NEW: @EricBalchunas and I took a look at the filings for spot crypto ETFs. We're putting out relatively high odds of approval across the board. Mainly focused on Litecoin, Solana, XRP, and Dogecoin for now.

Here's the table with the odds and some other details: pic.twitter.com/xaXaNXLb0M

— James Seyffart (@JSeyff) February 10, 2025

Recap

With so many uncertainties, strong fundamentals still support XRP in the long term. The use of XRP in cross-border payments and institutional adoption is escalating, which hints that XRP will be positioned to seize the opportunity after the storm. But as for now, XRP investors should prepare for the storm as the cryptocurrency seeks to reclaim the ground it has lost. Continuing the selloff could put prices below $2 in the short term.