Why Is XRP Price Dropping?

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The XRP price has dipped below $2** for the first time in over 12 weeks, stirring concern among investors and crypto enthusiasts alike. Over the past 24 hours, XRP declined by approximately **2%**, settling around **$1.99, with a brief touch of **$1.90**—a level not seen in months. This recent 2.18% drop contributes to a cumulative decline of **7.93%** since June 19, when XRP was valued at $2.17.

Despite the downturn, experts suggest the root cause isn’t tied to XRP’s intrinsic value or technological shortcomings. Instead, the sell-off reflects broader market dynamics influenced by global events.

Broader Market Pressure, Not XRP Weakness

Analysts point out that XRP’s price movement is closely aligned with overall cryptocurrency market sentiment rather than project-specific issues.

Versan Aljarrah, co-founder of Black Swan Capitalist, emphasized that the dip is not indicative of failing fundamentals.

“XRP is simply following broader market sentiment,” he explained.

This means that while XRP may be experiencing downward pressure, it's not due to internal weaknesses—such as lack of adoption or regulatory setbacks—but rather a reaction to macro-level forces affecting digital assets across the board.

👉 Discover how market sentiment impacts altcoins like XRP during global shocks.

Geopolitical Tensions Shake the Crypto Landscape

The entire crypto market has entered a risk-off phase. In just 24 hours, the total market cap dropped by 2.6%, dragging down nearly every major cryptocurrency.

Here’s a snapshot of recent losses across top digital assets:

At the heart of this correction lies escalating geopolitical tension between Israel and Iran, which has triggered risk aversion among global investors.

The Israel-Iran Conflict: A Catalyst for Market Volatility

On June 22, U.S. forces conducted airstrikes on three key Iranian nuclear facilities—the most aggressive Western military action against Iran since 1979. In response, Iran launched missile attacks on Israeli targets and issued threats against American military bases in the Middle East.

Additionally, Iran’s parliament voted to potentially close the Strait of Hormuz, one of the world’s most critical oil transit chokepoints, through which about 20% of global oil supply passes daily.

Such developments have heightened fears of supply disruptions, energy shortages, and wider regional conflict—all of which weigh heavily on financial markets, including cryptocurrencies.

Oil Prices Surge Amid Crisis – Crypto Pays the Price

As tensions mount, global oil prices have surged:

If crude oil climbs toward the predicted range of $100–$150 per barrel, economists warn of renewed inflationary pressure worldwide. Higher energy costs reduce disposable income, tighten monetary policy, and decrease liquidity in risk assets—including crypto.

Moreover, rising fuel prices directly impact Bitcoin mining profitability, increasing operational costs for miners who rely on energy-intensive proof-of-work systems. While XRP itself uses minimal energy (being a proof-of-consensus asset), the broader bearish sentiment drags even efficient, utility-focused coins downward.

👉 See how macroeconomic shocks influence digital asset valuations beyond technical charts.

Can XRP Recover? Analysts Remain Bullish

Despite short-term volatility, many experts maintain a positive long-term outlook for XRP.

EGRAG Crypto, a prominent market analyst, forecasts aggressive upside potential if historical patterns repeat:

Over the past year alone, XRP has delivered an impressive return of 310.4%, outperforming both Bitcoin and Ethereum during the same period. This performance underscores growing confidence in XRP’s real-world applications.

Supporters argue that XRP's strength lies in its utility-driven design—particularly in cross-border payments, remittances, and stablecoin settlements—rather than speculative hype.

Long-Term Value vs. Short-Term Noise

While headlines focus on price drops, seasoned investors look beyond daily fluctuations. XRP continues to be integrated into payment networks globally, with Ripple (the company behind XRP) expanding partnerships with banks and financial institutions in emerging markets.

Furthermore, ongoing discussions around a potential XRP ETF could unlock new institutional interest in 2025 and beyond.

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These terms reflect common queries from users seeking timely insights into XRP’s performance amid global uncertainty.

👉 Explore data-driven tools to analyze XRP trends before making your next move.

Frequently Asked Questions (FAQs)

How is XRP performing today?
As of June 23, XRP is trading near $2.01, down about 1.5% from the previous day. The dip below $2 was driven by broad market sell-offs linked to geopolitical instability and rising oil prices.

How low can XRP price go in 2025?
Bearish technical models suggest a possible short-term low of $1.40**, though most analysts expect support between **$1.70 and $1.85 unless macroeconomic conditions deteriorate further or new regulatory hurdles emerge.

Is XRP a good investment in 2025?
Yes. Despite volatility, XRP remains a compelling investment due to its strong use case in global payments, increasing adoption by financial institutions, and potential for regulatory clarity. Its performance over the past year shows resilience and growth momentum.

Does the Israel-Iran conflict directly affect XRP?
Not directly. However, such conflicts increase market-wide risk aversion, strengthen safe-haven assets (like gold and the U.S. dollar), and reduce capital flow into speculative assets—including cryptocurrencies like XRP.

What factors could drive XRP higher in the future?
Key catalysts include resolution of regulatory uncertainties, expansion of Ripple’s payment network, increased stablecoin issuance on the XRPL ledger, and possible approval of an XRP-based ETF.

Should I buy XRP during this dip?
For long-term investors focused on utility and adoption, current price levels may present a strategic entry point—especially if broader markets stabilize. Always conduct independent research and consider portfolio diversification before investing.

Final Thoughts: Volatility Is Temporary, Utility Endures

The recent dip below $2 may feel unsettling, but context matters. XRP’s decline appears less about its own fundamentals and more about external shocks—geopolitical unrest, energy price spikes, and investor flight to safety.

History shows that digital assets often rebound strongly after such corrections, particularly those backed by real-world use cases. With Ripple continuing to innovate and expand globally, XRP remains positioned as more than just a speculative token—it’s a tool reshaping international finance.

As always, short-term price swings shouldn’t overshadow long-term potential—especially for assets built on scalable infrastructure and practical application.