XRP Performance in Crypto Winters: History, Risks and What Traders Should Know
XRP (Ripple) has entered a downtrend amid the current crypto bear market, falling ~15% over seven days, ~26% over two weeks and over 40% year‑on‑year. Historically, XRP has tracked broader market cycles: collapsing from 2018 highs above $3 to ~$0.30 during that bear market, rallying to ~$1.7 in April 2021, then retreating to the $0.35 range in 2022 before surging above $2 in late 2024 and reaching a new all‑time high in July 2025. The piece highlights structural differences—XRP is an altcoin tied to Ripple, a US‑based company that sells a portion of supply and builds payment/settlement products (including stablecoin RLUSD). XRP holders receive no dividends or governance rights; supply concentration and company sales are notable risk factors. At the time of writing XRP’s market cap is around $85 billion, which tempers expectations for an outsized parabolic rally despite historical multi‑bag returns for bear‑market bottom buyers. The article emphasizes that historical cycle patterns do not guarantee future performance and warns of potential further downside (including the possibility of another ~90% drop). This is analysis and not financial advice.
Neutral
The article is primarily descriptive and historical rather than reporting new, market‑moving events (no fresh regulatory shock, major partnership or protocol change). It reiterates that XRP is in a downtrend but notes past cycle recoveries and Ripple’s ongoing business activities. Short‑term impact: slightly bearish — continued price weakness and negative sentiment (Fear & Greed index at extreme fear) may pressure XRP trading, encourage stop‑lossing and reduced leverage. Open interest and liquidity metrics cited elsewhere suggest traders have reduced exposure. Medium/long‑term impact: neutral to modestly bullish conditional — if macro sentiment and crypto cycles reverse, XRP has historically produced large recoveries, but structural risks (supply concentration, company sales, absence of holder rights) cap sustained upside and increase tail risk. Comparable past events: 2018 and 2022 bear markets showed deep drawdowns followed by significant rallies in 2021 and 2024–25; those rallies rewarded bottom‑timers but came after prolonged consolidation and macro recovery. For traders: manage position sizing, watch on‑chain flows and Ripple token sales, monitor macro and BTC trend, and avoid relying on historical performance as a predictive signal.