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XRP Price Prediction: Crash to $2.12 — What’s Next for Ripple’s Token?

  • XRP fell 26% to $2.12 on February 3, 2025 amid trade tensions.
  • AI forecasts support near $2.50 after overbought conditions at $3.20.
  • Analysts view the drop as a technical correction; stable support may trigger a rebound.

XRP, the third-largest cryptocurrency by market cap, plunged 26% in 24 hours to $2.12 on February 3, its lowest price since Dec 31, per CoinGecko.

The sell-off mirrors broader crypto market declines triggered by U.S. trade tensions, with Bitcoin (BTC) down 6.8% to $94,290 and Dogecoin (DOGE) crashing 15% to $0.27. Analysts debate whether this is a short-term correction or a deeper bearish shift.

The Crash: Trade Wars and Technical Breakdown

President Donald Trump’s February 1 announcement of new tariffs on China, Canada, and Mexico (effective February 4, 2025) rattled global markets.

Cryptocurrencies, traded 24/7, reacted swiftly. XRP fell to an intraday low of $2.51 on February 4, per CoinMarketCap, while its market cap dropped to $150 billion.

Analyst Timothy Sykes linked the slump to weekend trading volatility and fears of a “wrecked” U.S. stock market. Pseudonymous trader DonAlt warned of further selling pressure on Monday.

Amid the panic, The Coin Republic’s State of the art AI analytics platform XRP price prediction flagged a potential downturn for XRP on January 28 — days before the crash.

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The AI model, trained on historical price patterns, on-chain data, and macroeconomic indicators, identified weakening momentum near XRP’s $3.20 resistance level.

The AI’s earlier report noted: “XRP’s RSI (14-day) at 78 signals overbought conditions. Retracement to $2.50–$2.90 likely.” On February 4, XRP hit $2.12, aligning with the prediction. The AI now suggests consolidation near $2.50 could precede a rebound, contingent on holding this support.

XRP Price Prediction: Bullish Continuation or Bear Trap?

XRP’s weekly chart shows a sharp rise from below $2.4 to a monthly high of $3.3 in January. This has been  followed by a sharp pullback to $2.12. Analysts categorize this as a “technical correction” within an uptrend. The $2.10–$2.50 range now acts as a liquidity zone, with $2.10 serving as critical support.

XRP/USDT Chart: Trading View
XRP/USDT Chart: Trading View

“The $3.00 level is overhead resistance due to supply,” says The Coin Republic’s AI report. “A close above $3.20 would confirm bullish momentum.” Failure to hold $2.10 risks a drop to $1.63–$2.17, per historical imbalance zones.

The crash reflects sector-wide stress. Ethereum (ETH) fell 8% to $2,944, Solana (SOL) dropped 7.3% to $202.90, and Bitcoin briefly dipped below $95,000. Trade tensions overshadowed positive developments, like Ripple’s ongoing efforts to resolve its SEC lawsuit.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Arnold Kirimi
Arnold Kirimi
Arnold Kirimi is a crypto and Web3 journalist from Nairobi, Kenya. With a sharp eye for emerging trends and a talent for demystifying blockchain jargon, Kirimi turns complex concepts into compelling narratives. Featured in top outlets like Cointelegraph, DailyCoin and CryptoSlate.