A sharp decline in XRP has unsettled short-term investors, though some observers caution that this sell-off could be forming a foundation for a significant rebound. The token fell sharply after reaching a peak last year, and traders are analyzing a combination of on-chain data and chart patterns to determine whether this represents panic or a potential opportunity.
Price data shows XRP dropped from a high near $3.65 to around $1.38, erasing much of its recent gains and marking a 60% retreat from its July peak. Traders noted a spike in realized losses, totaling roughly $1.90 billion over a week—a level consistent with past market capitulations. Such concentrated losses can often exhaust selling pressure, leaving the market with fewer uncertain holders.
Reports indicate the token is nearing a higher-time-frame demand zone between $0.85 and $0.65, an area that previously acted as resistance before the late-2024 rally. In earlier cycles, this same zone transformed into a multi-year accumulation range where long-term buyers entered the market.
Analyst Crypto Patel has emphasized these historical signals on social media, suggesting the current situation appears familiar and may not signal lasting panic. He pointed out that while XRP has fallen 69% and fear is widespread, the last time it experienced a decline of this magnitude, it subsequently surged 835%.
Bitcoin’s recent volatility has also influenced altcoin markets. As BTC moved from the high $66,000s down to the mid-$60,000s, altcoins—including XRP—tended to follow, often with greater intensity. This dynamic underscores how broader market movements remain relevant even amid token-specific narratives.
Reports show rapid selling from short-term holders after XRP broke below the psychologically important $2 level, which many had viewed as support. That breakdown accelerated the drop to around $1.11 in early February, representing a nearly 70% decline from the cycle high.
A portion of the market has exited positions out of frustration, reflected clearly on-chain as realized losses. Such selling waves can sometimes indicate the final stage of a downturn before conditions stabilize.
From a technical perspective, maintaining a position above the lower end of the $0.65 to $0.85 range on longer timeframes would be viewed positively by many analysts. If that support holds, a gradual recovery could see the token retest previous resistance levels around $2 and $3.
Frequently Asked Questions
Of course Here is a list of FAQs about the recent XRP price drop and the potential for a major surge framed in a natural conversational tone
Beginner General Questions
1 I just saw the news Why did XRP drop by almost 70
XRPs price like most cryptocurrencies is highly volatile A sharp drop like this is usually caused by a combination of factors a broader market downturn negative sentiment across the industry and possibly large investors selling their holdings which triggers more selling from others
2 What does an 835 surge mean Is that even possible
An 835 surge means the price would need to multiply by over 9 times from its current level For example if XRP were at 050 it would need to rise to about 468 While such massive surges have happened in cryptos past they are extremely rare and highly speculative Its a prediction not a guarantee
3 Should I buy XRP now that its on sale
This is a personal investment decision While some see a major drop as a buying opportunity its crucial to understand that the price could go lower Never invest more than you can afford to lose and consider it a highrisk asset
4 Where are these predictions of a huge surge coming from
They often come from technical analysts or optimistic commentators Sometimes they are based on historical patterns or hopeful speculation about future events like the conclusion of Ripples lawsuit with the SEC Always view these predictions with healthy skepticism
5 Is XRP dead after such a big crash
Not necessarily Major cryptocurrencies have experienced severe crashes in previous cycles and later recovered to new highs However past performance does not guarantee future results Its longterm viability depends on adoption regulatory clarity and overall market health
Advanced Strategic Questions
6 Beyond general market fear are there any XRPspecific reasons for this drop
Yes potential factors include lingering uncertainty from the SEC vs Ripple lawsuit concerns about the pace of adoption by banks and financial institutions and the scheduled release of