1st February 2025 – (New York) In the past 24 hours, XRP has fallen below the crucial $3 threshold, experiencing a decline of more than 10 cents. This sharp drop has raised alarms that XRP may be on track to repeat its historical underperformance in February, a month that typically sees negative returns for the cryptocurrency.
Data from Cryptorank reveals that XRP has an average monthly return of -3.00% in February, with only four positive months recorded since 2014. The most notable gain occurred in 2022, when XRP saw a 26.3% increase. Other positive years included 2016, 2019, and 2024, with average returns of 23.8%, 1.13%, and 17.1%, respectively. Conversely, 2014 marked a significant decline of 33.4%, while 2017, 2018, and 2021 also ended negatively with losses of 12.3%, 22.1%, and 14.8%.
Market analysts believe that the recent sell-off may not have a lasting detrimental effect on XRP, despite the historical trend indicating an average loss of around 3%. There remains a possibility that XRP could defy expectations and end February in the green, especially given the positive sentiment surrounding the broader cryptocurrency landscape and indications of support from the new U.S. administration for crypto assets.
Ripple’s potential inclusion in a proposed U.S. crypto strategic reserve could dramatically shift XRP’s price outlook, potentially driving demand and pushing the token towards the $4 mark. Ripple CEO Brad Garlinghouse has been advocating for this inclusion, aligning with the current administration’s focus on supporting American tech firms, though critics view this narrative as self-serving.
As of now, XRP is trading at approximately $2.98, reflecting a 3.69% decline over the last 24 hours, with trading volume down 4.59% to $4.46 billion. Investors seem to be adopting a cautious stance, as XRP has fluctuated between $2.97 and $3.11 in recent hours. Analysts continue to monitor the market closely, with some forecasting a potential rally if XRP can hold above key support levels.
