The cryptocurrency market has recently experienced a significant downturn, with the total market capitalization plummeting nearly 9% in just 24 hours. Among the hardest-hit assets was XRP, which saw a dramatic 10% single-day drop—its steepest decline since December. This sharp correction has reignited debate around the digital asset’s resilience, market sentiment, and future potential.
Market-Wide Downturn Pressures XRP
XRP’s recent performance mirrors broader trends across the crypto landscape. Over a 48-hour period, the token shed approximately 21% of its value, falling from a high of $2.59 to a low of $2.05. This rapid descent reflects growing investor caution amid shifting macroeconomic signals and deteriorating risk appetite.
The selloff coincided with a pivotal announcement from the U.S. Federal Reserve, which revised its expectations for interest rate cuts in 2025. Originally forecasting multiple cuts to stimulate economic growth, the Fed now indicates a more cautious approach due to persistent inflationary pressures. This shift has weighed heavily on speculative assets like cryptocurrencies, where lower interest rates typically fuel investment inflows.
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As risk-off sentiment spreads through financial markets, even established digital assets like XRP are feeling the pressure. While short-term volatility is expected, many traders are watching closely for signs of stabilization and potential reversal patterns.
Ryan Selkis Reignites Criticism Against XRP
Amid the turbulence, prominent crypto analyst Ryan Selkis, founder of Messari, reentered the conversation with a characteristically sharp commentary on XRP. In a post on X (formerly Twitter), Selkis sarcastically suggested that the token’s plummeting valuation might make it an attractive buy—albeit with a heavy dose of irony.
"Now that XRP has fallen below the value of Coinbase, MicroStrategy, and SoftBank (combined), it’s looking like a good buy again."
— Ryan Selkis (@twobitidiot)
This remark not only highlights the extent of XRP’s devaluation but also underscores ongoing skepticism from key figures in the crypto space. Selkis has long been critical of Ripple and its flagship asset, previously dismissing the XRP community as “worthless bot groups.” His latest comment appears to be both a market observation and a pointed jab at what he perceives as overinflated expectations within the ecosystem.
The backlash followed Selkis’ earlier criticism of Ripple’s Chief Legal Officer, Stuart Alderoty, further intensifying tensions between institutional analysts and XRP supporters. While such public disputes can amplify negative sentiment in the short term, they also spotlight the high-stakes debate surrounding regulatory clarity, adoption potential, and long-term viability of enterprise-focused blockchains.
Technical Outlook: Support Levels and Recovery Signals
Despite the bearish momentum, technical indicators suggest that XRP may be nearing a turning point. At the time of writing, the asset is trading around **$2.16**, having found strong support near the $2.05 level. This resilience hints at underlying buying interest, potentially signaling a floor for further declines.
Not all analysts are bearish. DarkDefender, a well-known crypto analyst, identified a promising breakout pattern on XRP’s daily chart. According to his assessment, if bullish momentum regains traction, XRP could first retest the $2.42 resistance level. A sustained move above this threshold might open the door for a more substantial rally toward $2.92.
Such projections hinge on broader market conditions improving and renewed confidence returning to the altcoin sector. Key factors to watch include Bitcoin’s price stability, on-chain activity metrics, and any developments in Ripple’s ongoing legal or partnership landscape.
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Frequently Asked Questions
What caused XRP’s recent price drop?
The decline was driven by a combination of macroeconomic uncertainty—particularly the Federal Reserve’s reduced rate cut projections—and broader risk-off behavior in financial markets. These forces triggered widespread selling across cryptocurrencies, with XRP experiencing one of the steeper falls.
Is XRP showing signs of bottoming out?
Yes. After dropping to $2.05, XRP found strong support and stabilized near $2.16. The presence of buying pressure at these levels suggests that a short-term bottom may have formed, though confirmation will depend on sustained volume and upward price movement.
How does the Federal Reserve influence cryptocurrency prices?
When the Fed signals fewer rate cuts or prolonged high interest rates, it increases borrowing costs and reduces liquidity in financial systems. This makes riskier assets like crypto less appealing compared to safer yields from bonds or savings accounts, often leading to sell-offs.
Can XRP recover to $2.42 or higher?
Some technical analysts believe so. If momentum builds and market sentiment improves, a move toward $2.42 is plausible. A breakout beyond that level could target $2.92, though macro conditions and overall crypto market health will play decisive roles.
Why does Ryan Selkis criticize XRP so frequently?
Selkis represents a segment of institutional crypto analysts who question XRP’s utility, decentralization, and community dynamics. His critiques often reflect broader debates about what qualifies as a true cryptocurrency versus a corporate-controlled digital asset.
What should investors watch next for XRP?
Key indicators include trading volume recovery, Bitcoin’s dominance trend, regulatory updates involving Ripple, and global macroeconomic data—especially U.S. inflation reports and Fed policy statements.
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Final Thoughts
While XRP’s recent 10% drop marks its largest single-day loss since December, it also presents an opportunity for reflection and strategic reassessment. Market corrections are inevitable in volatile sectors like cryptocurrency, but they often separate emotional reactions from informed decision-making.
With technical support holding and some analysts calling for a rebound, XRP remains in focus for both skeptics and believers. As macroeconomic narratives evolve and on-chain fundamentals are tested, the coming weeks could prove pivotal for its trajectory.
For investors navigating this uncertainty, staying updated with reliable data sources and maintaining a balanced perspective is essential—especially when sentiment swings fast and hard in the digital asset world.