On-chain activity and user engagement have dropped sharply.
Technical charts show bearish patterns with weak support levels.
Delayed catalysts like ETF approval are failing to drive sustained growth.
XRP, the digital currency created by Ripple Labs, has been facing a steep decline despite a major positive development earlier this year. Even though a key event gave hope to investors, it hasn't been enough to hold up the price or restore full market confidence. Here's a detailed explanation of what’s happening with XRP in simple terms.
For years, XRP was under a cloud of legal uncertainty due to a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC claimed that Ripple sold XRP as an unregistered security. This case started back in 2020 and dragged on for years, creating doubt in the minds of investors and companies looking to work with XRP.
Finally, in March 2025, the SEC officially dropped the lawsuit. This was supposed to be a turning point. Many believed that with legal clarity, XRP could rise strongly. Initially, the token did bounce, reaching a price of around $2.53. However, the joy was short-lived. XRP started to lose ground again and has recently been trading closer to $2.20.
When looking at XRP’s price charts, technical analysts noticed some worrying signs. One key area to watch is the support zone between $1.77 and $1.90. This is the range where buyers have previously stepped in to prevent the price from falling further.
If XRP drops below that zone, the next likely stop could be near $1.20. Some chart patterns also suggest that the token might be forming a bearish trend, meaning prices could continue to fall unless something big changes.
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Blockchain activity is one way to measure how useful and active a cryptocurrency is. For XRP, the number of daily users on its network has fallen sharply. In March, there were about 608,000 active addresses (wallets doing transactions). Now, that number has dropped to around 31,000.
This large drop suggests that fewer people are using the XRP Ledger, which weakens its case as a functional and in-demand cryptocurrency. Fewer transactions mean less network utility, which usually puts downward pressure on price.
XRP is not alone in this struggle. The whole cryptocurrency market has been hit by broader economic problems. Interest rates are high, global tensions are rising, and investors are becoming more cautious about risky assets like cryptocurrencies.
When people are unsure about the economy, they tend to move their money into safer assets such as government bonds or cash. This hurts crypto prices, especially for tokens like XRP that rely heavily on investor sentiment and momentum.
Apart from the SEC lawsuit, other XRP-related developments were expected to push the price up. These include:
The potential approval of a spot XRP exchange-traded fund (ETF) would make it easier for big investors to buy XRP.
The launch of RLUSD, Ripple’s stablecoin, could increase network usage.
Various events and summits related to the XRP Ledger ecosystem.
While each of these had the potential to be positive, they didn’t generate enough excitement to maintain higher prices. The ETF is still under review with no final decision. The RLUSD stablecoin was launched, but didn’t bring a lasting increase in price or usage.
Different analysts have different views on where XRP might go next:
Optimists believe XRP could reach between $5 and $10 by the end of 2025 if the ETF gets approved and institutional investors start buying.
Pessimists think XRP could fall to $1.20 or lower if support levels break and the network stays quiet.
Neutral analysts estimate a range between $1.80 and $8.40, depending on market conditions, usage of the XRP Ledger, and whether new money flows into the crypto space.
These wide-ranging predictions show just how uncertain XRP’s future is.
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Despite the SEC dropping its lawsuit, XRP’s price has not stayed strong. Here’s why:
The legal victory was a one-time event. Once the excitement faded, there was nothing new to support the price.
Charts are still showing weakness, and XRP hasn't broken through major resistance levels.
Network usage is down, which signals less interest from users and developers.
Global financial conditions are still tough, making it hard for speculative assets to grow.
Heavy speculative trading in XRP derivatives makes it vulnerable to sharp ups and downs.
There are a few key things that could change the direction for XRP:
ETF Decision (Expected mid-2025): If regulators approve a spot XRP ETF, it could open the doors to more investment and push prices up.
Improved Usage of XRP Ledger: If more people start using the network again, it could help rebuild long-term confidence.
Changes in Global Economy: If interest rates fall or if global uncertainty eases, cryptocurrencies could see renewed interest.
Positive Developments at Ripple: New partnerships or adoption of Ripple’s technology for cross-border payments could support the token.
There are three likely paths for XRP:
Bearish: If it breaks below $1.77, prices could fall to $1.20 or lower.
Neutral: XRP may stay stuck between $2.00 and $2.40 without any big news.
Bullish: If XRP can break above $2.50 and get a strong catalyst like ETF approval, it could climb to $3.40 or even higher later in the year.
XRP had its moment in early 2025 when the SEC dropped its lawsuit, removing a major legal barrier. However, that boost wasn’t strong enough to change the overall direction of the market. Weak charts, low network activity, and challenging global conditions have all worked against it.
For XRP to recover meaningfully, it will need more than one-time news. It needs steady growth in usage, strong investor interest, and a friendlier global financial environment. Until those things happen, XRP may continue to struggle, with the risk of falling even lower.
June 2025 could be a turning point. If positive developments emerge, such as ETF approval or increased usage, XRP could regain strength. But without those catalysts, the token is likely to remain under pressure for the rest of the year.