Why Is Ripple (XRP) Vulnerable During a US Government Shutdown?

Jakarta, Pintu News – As the United States government enters a shutdown period, the cryptocurrency Ripple is showing significant signs of vulnerability. Based on historical data from CoinGecko, Ripple (XRP) experienced a sizable price drop during the previous shutdown period. This has raised concerns for investors and market watchers.

History Shows Ripple (XRP) Vulnerability During Shutdowns

During the US government shutdown that occurred in 2018, Ripple (XRP) experienced a notable price drop. During the brief three-day shutdown from January 20 to 22, the price of Ripple (XRP) dropped from around $1.56 to $1.36, or about 12.8%.

Furthermore, during the longest shutdown in US history that lasted 35 days from December 22, 2018 to January 25, 2019, the token’s price dropped from approximately $0.3623 to $0.3172, registering a decline of 12.45%.

Government shutdowns often create uncertainty in financial markets, including crypto markets. Investors tend to become more cautious, which has resulted in a decline in the price of some assets, including Ripple (XRP).

Also read: Will the US Government Shutdown Lower the Country’s Credit Rating?

Bearish Indicators on the Ripple (XRP) Derivatives Market

Current Ripple (XRP) derivatives market data also supports a bearish view of the cryptocurrency. The long/short ratio being below one, 0.98 to be precise, shows that more traders are betting on a price drop than a rise.

This is an unfavorable indicator for Ripple (XRP), especially in volatile market conditions. The uncertainty caused by the government shutdown may exacerbate this situation, as investors may prefer to withdraw or not place their funds in assets that are perceived as risky, such as crypto.

Also read: 3 Events that Potentially Make XRP Holders “Furious” This Week, What’s Up?

Ripple (XRP) Price Prediction: Potential Decline or Recovery?

Given the current conditions and historical data, Ripple (XRP) could experience a further decline to reach $2.57. However, there is also a possibility for a recovery and price increase to $3.28 if market conditions are favorable and there is a positive change in investor sentiment towards cryptos.

This prediction of course depends on many factors, including the duration and impact of the US government shutdown on the overall economy. Investors are expected to monitor the situation closely and make decisions based on in-depth analysis.

Conclusion

In the face of this period of uncertainty, it is important for investors and market watchers to pay attention to economic and political indicators that could affect the crypto market. Ripple (XRP), with its history of having shown vulnerability during government shutdowns, requires special attention in anticipation of further price movements.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• BeInCrypto. US Government Shutdown and Its Impact on XRP Price. Accessed on October 3, 2025
• Featured Image: Coinmarketcap