XRP Could Be In For A Major Price Dip: Here’s Why

Ripple’s XRP token has faced significant hurdles for almost a year now. The asset hit a new all-time high of $3.65 in July of 2025. But the upswing did not last. XRP has been on a downward trajectory for nearly nine months. The popular cryptocurrency’s lackluster performance is attributed to a general market bearishness, arising from macroeconomic uncertainties and geopolitical tensions. However, XRP may be heading for another price correction. Let’s discuss why.

Could XRP Be In For Another Price Correction?

2025 was marked with significant bullish developments for XRP. The highlight of the year was the settlement of the SEC vs. Ripple lawsuit. The financial regulator had accused the company of selling unregistered securities in December 2020. However, a US court ruled that selling XRP to retail investors did not fall under securities laws, but institutional purchases did. The move brought substantial clarity for XRP.

XRP then went on to see the launch of its first ETF in late 2025. The ETF launch was another major milestone for the project. However, the asset’s performance has dipped over the last few months.

According to Santiment XRP data, XRP sentiment hit extreme fear levels earlier this week. Social media sentiment shows a bearish signal, and there is substantial FUD (Fear, Uncertainty, Doubt) around the asset. Although such circumstances have historically been followed by price reversals, there is another factor to consider.

Liquidity levels for XRP on Binance have fallen to 2020 lows. The development could lead to violent price swings for the asset. Whether the swing is bullish or bearish is yet to be seen. Given that the larger economy is weak and investors continue to be cautious of crypto investments, there is a chance that we could see prices dip in the coming days.

Also Read: 3 Things That Make XRP Great, And 3 Things That Don’t