The crypto market has been gripped by macroeconomic headwinds, causing turbulence even for the most bullish assets. XRP, the third-largest cryptocurrency by market cap, was not immune to this pressure. Despite an impressive monthly high of $3.0710, the global market onslaught caused the asset to retrace by a staggering 42%, dropping to $1.7738. However, XRP has since rebounded, recovering over 35% from its low to trade at $2.3995 at press time, signaling potential for a strong recovery.
During this sell-off, whales offloaded over 130 million XRP, further exacerbating the downward momentum. Concerns over continued downside movements lingered. Despite this, market analysts are optimistic, with some suggesting that XRP may have reached a generational low, a potential bottom from which it can rebound significantly.
Whales have offloaded over 130 million $XRP in the past 24 hours! pic.twitter.com/s43x7Rviba
— Ali (@ali_charts) February 2, 2025
Is XRP at a Generational Low?
Prominent analyst Dom recently weighed in, suggesting that XRP’s correction from its yearly high of $3.3999 could mark a generational bottom for the cryptocurrency. He pointed to similar historical downturns that served as pivotal lows for XRP, such as the 70% crash after the SEC lawsuit against Ripple in 2020 and the 55% decline during the COVID-19 market crash in early 2020.
XRP community member XRPBags echoed these sentiments, noting that the 35% and 36% declines seen in 2024 are less severe compared to XRP’s sharp corrections in 2017, when the asset saw drops of 60% and 73%. Both analysts emphasized that XRP has historically rebounded strongly from such dips, leading to significant gains.
The Legendary Bounce Scenario
In a similar vein, XRP community influencer Amonyx has been vocal about a potential “legendary bounce” for the asset. Drawing from market patterns in 2017, Amonyx highlighted a similar accumulation phase followed by massive rallies. With the total 3 market cap (excluding Bitcoin and Ethereum) dropping to $866 billion, Amonyx predicts that XRP and other altcoins could see substantial rallies akin to the ones witnessed in 2017.
Also Read: Is Trump’s Tariff War Behind XRP’s 33% Drop to $1.95? Crypto Market Reacts to Global Tensions
Despite recent losses, XRP’s resilience in the face of market adversity, coupled with the historical patterns of recovery, keeps the hope alive for future growth.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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