XRP has recently dropped below $2 for the first time in 2025, signaling a major shift in the cryptocurrency’s market performance. The price dip is largely attributed to the capitulation of large investors, often referred to as “whales,” alongside broader market challenges that have shaken confidence in the digital asset. The last few days have seen a sharp decline, with XRP falling to $2.35 on February 3, 2025, a drop of nearly 9.7% from the previous day.
The primary catalyst for this drop seems to be a combination of factors, including renewed geopolitical tensions. U.S. President Donald Trump’s announcement of new tariffs has further fueled uncertainty in the financial markets. Trump’s decision to impose a 25% tariff on Canada and Mexico, and a 10% tariff on China, sent shockwaves through global markets, including the cryptocurrency sector. These trade disputes have added significant volatility, further driving down investor sentiment and contributing to the broader market selloff that affected a wide range of digital currencies.
Adding to the pressure, XRP has seen a surge in activity from large holders, with over 2.6 billion XRP tokens moved to exchanges. This surge in exchange deposits suggests that many of the cryptocurrency’s big investors have chosen to liquidate their holdings. This behavior is a clear sign of whale capitulation, which is contributing to the downward momentum in the market. The decision of these whales to sell off their XRP tokens has amplified the downward spiral in the price.
Despite the current price plunge, some analysts remain bullish on XRP’s future. They believe that once the broader cryptocurrency market stabilizes and recovers, XRP could regain its bullish momentum. Many believe the fundamentals of the digital asset are still strong, and a recovery could occur if global market conditions improve.
At the time of writing, XRP is trading at $2.36, a 14.49% decrease from its previous close. The cryptocurrency saw an intraday high of $2.84 and an intraday low of $1.98, further highlighting the volatility XRP is currently experiencing.
Given the ongoing fluctuations and market unpredictability, it’s important to approach cryptocurrency investments with caution. XRP’s recent price performance highlights the volatile nature of digital currencies, and it’s advised that investors keep a close watch on market developments before making decisions.
