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In the last 24 hours, XRP has plunged below the critical $3 level, losing more than 10 cents in its free fall. The sharp decline might signal that XRP could repeat its history in February. Notably, XRP usually underperforms in the second month of the year.
Historical trends highlight February weakness
According to Cryptorank data, XRP has an average monthly return of -3.00% for February. Since 2014, XRP has only finished in the green four times, with the highest percentage return in 2022. In that year, XRP registered a 26.3% increase in value.
Arman ShirinyanThe other three years of positive performances were in 2016, 2019 and 2024, with average monthly returns of 23.8%, 1.13% and 17.1%, respectively.
Conversely, XRP performed poorly in 2014, with a 33.4% decline. Aside from 2017, 2018 and 2021, with a negative growth of 12.3%, 22.1% and 14.8%, respectively, all other declines were below 10%.
Market observers consider this a plus for XRP as any sell-off that will occur might not adversely impact the coin. While acknowledging history leans toward an average of 3% cumulative loss, XRP could still flip the pattern and close February in the green.
Analysts highlight the broader cryptocurrency dynamics, which indicate the new U.S. administration remains pro-crypto as an indicator.
Can XRP reverse course?
Additionally, Ripple’s move to get included in the proposed U.S. crypto strategic reserve, if it scales through, could transform the price outlook in a flash. This is because it could drive up demand for XRP and increase its value, pushing it to test the $4 mark.
Yuri MolchanBrad Garlinghouse, Ripple’s CEO, recently stated that the company was pushing for inclusion in line with the current administration’s interest in supporting American tech organizations. However, critics have pushed back at this narrative as largely self-serving.
As of this writing, XRP was trading at $2.98, a 3.69% decline in the last 24 hours. As investors slow down on market activities, the trading volume has dipped by 4.59% to $4.46 billion.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Vladislav Sopov
Tomiwabold Olajide
Dan Burgin