Why XRP Is Going Down? Latest XRP News and Price Predictions (March 2025)

As of March
1, 2025, XRP, the native token of the XRP Ledger developed by Ripple, is
experiencing a significant price drop, trading at approximately $2.13 – a 17%
decline in the last 24 hours and a whopping 31% drop over the past month.

This has
left investors and the XRP community asking: Why is XRP going down? The answer
lies in a mix of Ripple lawsuit updates, broader cryptocurrency market trends,
regulatory uncertainty, and recent XRP news shaking investor confidence.

Why Is XRP Price Down
Today? Current XRP Price Trends

XRP’s
current price of $2.13 reflects a turbulent period, with its market cap
hovering around $24 billion, securing its spot as the fourth-largest
cryptocurrency behind Bitcoin, Ethereum and Tether. Over the past week, XRP has
shed 31% of its value, a stark contrast to its 250% surge over the last six
months.

XRP is
certainly not being helped by the strong dollar and the general sell-off in the
broader cryptocurrency market. As we reported earlier, Bitcoin has also fallen
sharply, briefly dropping below $80,000 and testing four-month lows.

Below, we
explain in more detail why the XRP price is crashing this week.

Why Is XRP Going Down?

XRP’s
recent decline can be attributed to a convergence of factors. Below are the key
reasons why XRP is going down, contributing to bearish sentiment and selling
pressure:

Ongoing
SEC Lawsuit Uncertainty: The regulatory cloud over XRP is a major factor weighing on its price.
Ripple Labs (the company behind XRP) has been entangled in a lawsuit with the
U.S. Securities and Exchange Commission (SEC) since December 2020. While Ripple
scored a partial legal victory in mid-2024 – with a judge ruling that XRP is
not a security for retail sales

Broader
Crypto Market Correction: XRP’s downturn has coincided with a wider pullback in the crypto
market. Investor sentiment across cryptocurrencies turned bearish in early
2025, leading to a market-wide sell-off. For context, global crypto market cap
fell by roughly 6-8% in late February.

Large
Whale Sell-Offs and Unlocks: Another contributor to XRP’s price drop is the activity of large
holders (whales) and token unlocks that increase supply. On February 3, 2025,
Ripple released 1 billion XRP from escrow (part of its scheduled monthly
unlocks). This influx of new tokens into the market triggered a sharp sell-off
– XRP’s price plunged 24.6% within a day following the release.

🕵️🐳 Whales have sold over 370 million #XRP in the last 96 hours! pic.twitter.com/q4c6jGOxOB

— Brett (@Brett_Crypto_X) February 26, 2025

Why Is XRP Price Crashing?

Declining
Network Activity:
Underlying on-chain data shows that XRP network usage has cooled, which can be
a bearish signal. Analysts have observed a steep drop in active addresses and
transaction activity on the XRP Ledger in recent months. In fact, XRP’s network
activity has declined by roughly 50% since December, with active addresses
falling from about 202,250 to 101,169​.

$XRP network activity has declined by 50%, dropping from 202,250 active addresses in December to just 101,169 today! pic.twitter.com/UWJDVDtram

— Ali (@ali_charts) February 27, 2025

Profit-Taking:Liquidation cascades in the futures
market amplified the drop: over $22 million in long XRP positions were
liquidated in 24 hours during the late-February decline. These forced sell-offs
drove the price lower and indicate that many bullish traders had to exit their
positions. The combination of profit-taking by early bulls and forced selling
by overleveraged traders created strong bearish momentum. As a result, XRP
entered a corrective phase, which is a natural market response after a big
run-up.

In summary,
XRP is going down due to a mix of regulatory uncertainty, negative market
sentiment, whale-induced selling pressure, declining usage metrics, and
technical retracement after an overheated rally. All these factors together
have led to the recent slump in XRP’s value.

XRP Technical Analysis.
Bulls Are Safe Above $2

My
technical analysis shows that XRP has once again been testing the lower
boundary of consolidation since December, which coincides with the
psychological level of $2.00. Similar to the previous instance (in early
February 2025), this was met with a strong reaction from buyers who, on Friday,
February 28, 2025, defended against the majority of the decline, forming a
bullish pin bar (hammer formation) on the chart.

If XRP
returns above the local support of $2.276 (early year lows), it will open the
path for further appreciation. However, it will encounter several resistance
levels:

• $2.51 – 50
  EMA
• $2.60 –
  downward trendline following lower highs since the beginning of the year
• $2.80 –
  November 2024 maximums also tested in February
• $3.40 – 2025 peak levels

Regarding
support levels, as long as $2.00 holds, buyers have no reason for concern. Even
if this level were to break, additional support is provided by the currently
almost horizontal 200 EMA at $1.80, which coincides with February lows. Below
these levels, however, we risk stronger declines, including toward:

• $1.60 –
  support at the level of local November peaks
• $1.20 –
  similar situation, local November peaks

XRP Price Predictions for
March 2025 And Beyond

Despite
the current bearish trend, many analysts see potential for recovery in March:

XRP Bullish Scenarios

• Some
  analysts predict XRP could trade between $2.15 and $2.40 during the first week
  of March
• More
  optimistic forecasts suggest a potential 42.09% increase to an average of $3.10
  in March
• The most
  bullish predictions point to a possible 300% surge if certain catalysts
  materialize

XRP Bearish Scenarios

• If XRP
  fails to hold support at $2.00, further declines toward $1.80 or lower could
  occur
• Continued
  whale selling could intensify downward pressure
• Negative
  technical indicators may prevent a quick recovery

XRP Price Forecasts Table for
2025

XRP News, FAQ

How much will 1 XRP cost
in 2030?

Cathie Wood,
the CEO of ARK Invest predicts, that by 2030 the price of one XRP token could
reach $1 million. More conservative estimates place it around $5 to $10,
factoring in competition from other blockchain solutions and the gradual
release of XRP from escrow, which could exert downward pressure on the price.

Will XRP ever hit $1000?

Most
analysts dismiss this as unrealistic within the next decade or two, though some
long-term optimists argue it could happen post-2050 if XRP becomes a dominant
asset in a fully digitized financial world. For now, $1000 remains more of a
speculative dream than a grounded prediction.

Will XRP reach $100?

Whether XRP
will reach $100 is a more attainable question than $1000, yet it still hinges
on extraordinary growth. At $100 per token, XRP’s market cap would hit $10
trillion—a massive leap from its current $130 billion or so as of early 2025. However,
Shannon Thorp, the Former Operational Specialist at Citi, believes it is
possible.

How much is 1 XRP right
now?

As of March
1, 2025, the price of 1 XRP stood at $2.14. In February, the price of XRP
declined by almost 30%, falling from the 7-year highs tested a month earlier.

This article was written by Damian Chmiel at www.financemagnates.com.