Ripple’s $3.3 billion XRP Drop Disrupts Bullish Run, Investors on Edge

The bulls have returned and pushed XRP above the key support-turned-resistance level, bringing it back to the $3 support mark.

Quick overview

  • XRP has surged above the $3 support mark, reaching $3.26, as bullish sentiment returns among analysts.
  • ChatGPT highlights that XRP is at a crucial point in its price journey, with potential for both gains and corrections.
  • Recent market anxiety and Ripple's release of one billion tokens from escrow have contributed to uncertainty in XRP's price stability.
  • Despite a significant rally, XRP's price retraced after hitting a new high of $3.65, falling back toward $2.7.

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The bulls have returned and pushed XRP above the key support-turned-resistance level, bringing it back to the $3 support mark. Several analysts and dedicated XRP bulls have made very bold predictions because, as of now, the asset is well above that level ($3.26).

However, we decided to ask Grok and Gemini, the latest versions of ChatGPT, for their opinions to get a more objective view.

ChatGPT said that XRP is currently at a “pivotal point in its 2025 price journey.” It also outlined a bearish scenario where XRP might lose some ground and undergo an extended correction, but it believes the asset has a good chance of overcoming current hurdles, especially if certain factors turn favorable.

Post-rally fatigue, considering its sharp rise since last year’s US elections, and overall market anxiety, including fallout from some of Trump’s controversial international speeches, could be contributing to this.

XRP was close to a breakout after several days of climbing, but the potential rally was halted by FUD (Fear, Uncertainty, and Doubt). Although Ripple executives tried to calm things down, their explanations weren’t enough to keep XRP’s price stable during the weekend instability. On Saturday, after Ripple decided to release one billion tokens from escrow, worry, doubt, and uncertainty spread through the XRP community.

Ripple unlocked 500 million, 100 million, and 400 million XRP tokens in three transactions worth $3.28 billion, according to Whale Alert. Previously, these tokens were held in escrow as part of a 2017 protocol designed to balance the market supply.

The transactions drew attention due to rumors that they might trigger a sell-off. As they sell XRP, they want you to buy it, wrote CFA Rajat Soni, a well-known X user. Soni’s remark suggested Ripple might be manipulating its escrow release schedule.

XRP’s price had been steadily rising, boosted by recent improvements in the long-running dispute between Ripple and the US Securities and Exchange Commission.

Ripple’s native token made history by soaring over 60% in a week and breaking through its January 2018 all-time high of $3.4 to reach a new high of $3.65. It began to retrace in the following weeks and fell toward $2.7, as expected.

ABOUT THE AUTHOR See More
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.

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