XRP's price has dropped, testing the crucial support level of $2.10 and attracting increased attention from investors. The decline is accompanied by weak on-chain activity and a lingering cautious sentiment, even after the resolution of the SEC lawsuit that had previously impacted the cryptocurrency.
Despite regulatory clarity, market participants remain wary, with analysts warning of potential additional declines.
Leadership from Ripple has not made public comments regarding the recent price dip. However, investors and analysts are increasingly concerned about historical underperformance, the lack of new institutional investment, and stagnant network activity plaguing XRP.
Some analysts suggest that further dips are possible if current trends persist, and that a prolonged distribution phase could lead to more volatility, possibly extending into late 2025. Recovery prospects for XRP appear to be highly dependent on broader positive movements within the overall cryptocurrency market.