XRP Price Forecast – XRP Could Drop to $1.43 If Selloff Continues

Highlights:

• XRP is currently dropping towards the $2 psychological support
• Drop through $2 could see XRP test $1.43 or lower
• XRP is long-term bullish as adoption rises globally

The crypto market is plummeting, and XRP is no exception. When going to press, XRP traded at $2.03, representing a 9.37% loss for the day. Bitcoin’s price action is a key factor behind XRP’s bearish price action.

Advertisement

Bitcoin has dropped below the $80k price; analysts believe it could be headed much lower. Matrixport cryptocurrency analysts are suggesting that the correction could continue until April. This is mainly due to the ongoing trade wars and a firming dollar. This also means XRP could see more selloffs in the short term.  

XRP Open Interest Continues to Drop

In addition to the selloff, XRP’s open interest is in decline. From its high of $7.62 billion on January 18, 2025, XRP’s open interest has plunged to $3.02 billion and continues to drop. This indicates that traders who enjoyed speculative positions during the bull run have now made an exit, leading to a cyclic bearish phase.

📊 UPDATE: XRP futures open interest fell to its lowest level in 2025, indicating that traders have been unwinding leveraged positions. pic.twitter.com/weUwedjnjJ

— CHAINZMONGER (@CHAINZMONGER) February 27, 2025

To add to the bearish sentiment, XRP has recently plummeted through the crucial support level of $2.25, adding to the bearish pressure. Trading volume has also crashed, which indicates lower engagement in the market.

If the current trajectory continues, analysts believe XRP can fall further, and the next support level will be around $1.90. This support is at the 200-day Exponential Moving Average (EMA). A drop through this level could cause the price to drop even further.  

Ripple’s Legal Standing Strengthens – Makes the Case for A Rebound

Despite the ongoing price weakness, there is some hope for XRP going forward. There is also speculation surrounding a closed-door SEC meeting on February 27 regarding a possible settlement or mucking case. The dropping of cases against major crypto firms suggests that Ripple might be next.

#SEC has a closed meeting in 30 min. IMO: Issues to be discussed are @coinbase @Ripple @Consensys case dismissals. pic.twitter.com/pEGQMoUWeF

— MartyParty (@martypartymusic) February 27, 2025

Political pressure is also piling on the SEC regarding cryptocurrency regulations, a factor that could benefit XRP. Senator Cynthia Lummis has attacked the SEC’s enforcement strategy, claiming that the bulk of digital assets are not securities as defined under the Howey Test. This mirrors the verdict of the Ripple case, which is favorable for Ripple as it heads into a crucial legal response on April 16. If the SEC abandons the case before this date, it could be transformative for XRP and the crypto ecosystem.

Institutional Growth in South Korea: A Positive Signal for XRP

Besides, XRP adoption is on the rise globally. For instance, Ripple has partnered with BDACS to offer cryptocurrency custody services in South Korea to increase market share in the institutional segment.

As part of this agreement, BDACS is expected to deploy Ripple Custody solutions to ensure the safekeeping of XRP, RLUSD, and other digital currencies. This further demonstrates Ripple’s intent to increase infrastructure for institutional use and assist XRPL developers. It is a factor that could help draw in more investors to XRP in the medium term.

#Ripple has partnered with #BDACS a 🇰🇷 digital asset custody firm, to provide institutional grade custody services for $XRP and $RLUSD in #SouthKorea . This collaboration aims to bolster the infrastructure for secure digital asset management in the region.

— Savage Capital (@savagecaptial) February 27, 2025

Technical Analysis – XRP Crashes Through Support Levels

The charts show that the token has crashed through multiple support levels in the last 24 hours, the most important of which is the $2.27 support level.

The crash through the $2.27 support puts XRP on course to test $2. A drop through the $2 support level could see XRP drop to the more long-term support level at $1.43.

Recap

XRP is projected to recover from the current selloff mainly due to a correction across the cryptocurrency market. That said, a potential positive end to the legal battle with the SEC and growing institutional interest will significantly enhance investor confidence. However, it could drop to prices below $2 in the short term.

Advertisement