XRP Price Drops to $2 — Has It Hit Rock Bottom?

Jakarta, Pintu News – The price of Ripple (XRP) fell sharply to $2 amid heavy selling in the crypto market, where many leveraged positions were liquidated. The launch of a new XRP spot ETF seems to be triggering the selling by traders, despite the progress made by Ripple Labs. Read our analysis of XRP’s price movements in this article!

Sharp Decline in Crypto Market

On Tuesday, the price of XRP reached $2, a significant drop that coincided with major losses in the digital asset market in general. In a 12-hour period, there was a large capital exodus from the market, according to market data.

XRP experienced a larger drop compared to other major cryptocurrencies such as Ethereum (ETH) and Binance Coin (BNB), which only recorded a more moderate decline.

This decline occurred without any obvious catalyst other than excessive leveraged positions among market participants. This shows that high volatility still characterizes the cryptocurrency market, especially for assets like XRP which are often sensitive to market news.

Anticipated Launch of XRP Spot ETF

This drop in XRP price coincides with the anticipated launch of a new spot XRP ETF that will track the CME CF XRP-Dollar Reference Rate. Market watchers consider this move a “Sell-the-News” event, a pattern that has been seen before in other XRP ETF launches.

Previous products from Canary Capital and Bitwise also experienced a similar trend, where positive initial performance was followed by a price drop amid broader market movements.

Read also: Peter Schiff Calls Bitcoin a Fake Asset, Gold and Silver Surge?

Currently, there are four XRP ETFs that have traded and attracted substantial net fund flows since the launch of the first product a few weeks ago. This suggests interest remains strong from investors despite price volatility.

Ripple Labs Performance and Future Projections

Despite the XRP price showing a decline, Ripple Labs, the company associated with this token, has recorded significant operational progress over the past year. However, the price performance of XRP is still negative on a year-to-date basis, starting 2025 at a higher valuation. This raises questions about the correlation between the company’s progress and the token’s value in the market.

Market analysts are now predicting that XRP may have reached a price bottom, although it will take time to ascertain whether this is truly a turning point or just temporary. Investors and market watchers will continue to monitor the dynamics between product development and market response.

Conclusion

XRP’s price drop to $2 marks a pivotal moment in recent crypto market dynamics. Despite the progress made by Ripple Labs, the market still reacts volatile to news and product developments. Going forward, the launch of the new ETF and further progress from Ripple Labs will be key in determining the direction of the XRP price.

FAQ

What caused the recent drop in XRP price?

The decline in the price of XRP was caused by heavy selling in the crypto market and excessive leveraged positions among market participants.

What is the XRP spot ETF?

An XRP spot ETF is a financial product that tracks the exchange rate of XRP against the US dollar, allowing investors to invest in XRP through traditional stock markets without having to hold XRP directly.

How many XRP ETFs are currently trading?

There are currently four XRP ETFs trading, which have attracted significant net fund flows since the launch of the first product.

How has Ripple Labs performed in the last year?

Ripple Labs has recorded significant operational progress over the past year, although the value of XRP in the market still shows a decline.

Has XRP hit a price bottom?

Some analysts predict that XRP may have reached a price bottom, but further observation is needed to confirm this.

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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. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto News. XRP Price Falls to $2 as Traders Eye New Spot ETF Launch, Is a Bottom Near? Accessed on December 2, 2025
• Featured Image: BiteMyCoin