XRP Price Dips 25%: Is a Bear Market Inevitable?

XRP has lost the momentum it had in November 2024, with a 25% drop from its peak this year, entering a technical bear market.

XRP Price Drops as Investors Wait for Key Developments

On Friday, as per Coinpedia Market data XRP’s price fell to $2.41 as investors awaited updates from the White House crypto summit. This summit will focus on Donald Trump’s plan for a strategic crypto reserve, with potential coins including Bitcoin, Ethereum, Ripple, Solana, and Cardano. Trump has hinted that Bitcoin is his preferred coin, though he recently signed a Strategic Bitcoin Reserve agreement.

For a more detailed XRP Price Prediction 2030, check out our full analysis!

Criticism of a Strategic XRP Reserve

Analysts remain skeptical about the US creating a Strategic XRP Reserve. A Polymarket poll placed the odds at just 29%.

Analysts like Willy Woo argue that no other country would buy US-controlled XRP, making it unsuitable for a strategic reserve. Tyler Winklevoss also stated that while he has no issues with XRP, Solana, or Cardano, only Bitcoin qualifies as a reserve asset.

Political Challenges for an XRP Reserve

It’s unclear whether Congress would approve an XRP reserve, as Trump would need majorities in both the House and Senate to move forward.

Potential for XRP’s Growth Amid SEC Developments

On a positive note, the likelihood of the SEC approving a spot ETF for XRP is high, with odds at nearly 80%. There’s also hope the SEC may end its litigation against Ripple Labs, which could boost investor confidence.

XRP Price Technical Analysis

XRP peaked at $3.4162 in January but has fallen by 25% to $2.50. It’s dropped below the 23.6% Fibonacci retracement level of $2.7315 and is trading near the 50-day moving average, forming a "head and shoulders" pattern. This suggests a bearish breakdown if the price falls below $2.00.

Bearish Outlook for XRP

If XRP breaks below $2.00, the next target could be the 61.8% Fibonacci level at $1.6215, a 35% drop. Further declines could push the price to $1.1340, representing a 55% decrease.

XRP faces challenges, with bearish market conditions and doubts about its role as a strategic reserve asset. However, developments like a potential spot ETF approval and a resolution of the SEC lawsuit may offer hope for future growth. Investors should closely monitor market trends and regulatory updates.