Here's Why XRP May Dip Further Before It Climbs Back to $3.84

Key Points

• XRP has gained over 770% in the past three years, but remains well below its all-time high.

• XRP ETFs and institutional adoption could provide long-term upside, but speculative profit-taking may pressure the price in the short term.

• Economic slowdowns, inflation, and market uncertainty have historically caused sharp XRP declines.

• 10 stocks we like better than XRP ›

Over the past three years, XRP (CRYPTO: XRP) has surged more than 770%, a rally that has left many cryptocurrency investors feeling as though this token is nearly unstoppable. Yet despite these impressive gains, XRP remains far below its all-time high of $3.84, reached back in 2018.

XRP does have several factors that could support further growth. One major potential driver is the hoped-for approval of spot XRP exchange-traded funds (ETFs) by the SEC, which would make it easier for investors to track and gain exposure to the cryptocurrency.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The token's network also has real-world use cases: It is employed by financial institutions such as PNC Bank in the U.S. and Santander, one of Europe's largest banks, as a bridge currency for cross-border transactions. Expanded institutional adoption through Ripple's On-Demand Liquidity (ODL) network could provide additional support for XRP's price over time.

However, XRP is not without its challenges. Several headwinds could push its value lower before it ever approaches its previous high of $3.84.

Image source: Getty Images.

1. Speculative investors may cash out

XRP's value has skyrocketed more than 770% in just a few years, a surge that naturally tempts some investors to lock in their gains and sell. When prices climb this dramatically, it's common for investors to take profits, particularly if they believe the cryptocurrency has limited upside in the near term or if it has already achieved significant gains over a short period of time.

History suggests XRP can decline sharply after a run-up. After reaching its all-time high of $3.84 in January 2018, XRP plunged 86% by December of that year. While the token has real-world applications -- such as serving as a bridge currency for cross-border transactions -- this dramatic drop highlights its inherent volatility. Many investors have likely purchased XRP simply because it has been on a strong upward trajectory over the past several years. Without compelling new catalysts to sustain momentum, these speculative holders may decide to sell, creating pressure that could push XRP lower in the near term.

2. Positive news may already be priced in

Even significant developments don't always move XRP's price as one might expect. Take the recent resolution of the SEC's litigation against Ripple Labs, for example. In 2020, the SEC accused Ripple Labs of improperly selling XRP in unregistered securities offerings.

While the dropping of the case was a major milestone for the cryptocurrency, XRP fell roughly 10% in the weeks following the announcement. This muted reaction suggests that the market had largely anticipated the news, and much of the potential upside was already reflected in the price.

This is fairly common among speculative investments. Even when the fundamentals or regulatory environment improve, the effect on price can be limited if investors have already factored the news into their expectations. For XRP, this means that future positive developments -- such as broader adoption by financial institutions or the approval of XRP crypto ETFs -- may not automatically translate into immediate price gains. Instead, momentum may depend on additional, unexpected catalysts to reignite investor enthusiasm.

3. The biggest near-term threat for XRP

If there's one thing that could push XRP lower in the near term, it's a slowing U.S. economy. The stock market and cryptocurrency investments have been frothy over the past several years, fueled in part by optimism about a strong economy. But recent data suggests that the tide may be shifting. In August 2025, only 22,000 jobs were added, far below expectations, and July saw a loss of 13,000 jobs. On top of that, the revised figures for the first three months of the year showed 911,000 fewer jobs added than previously reported.

When investors start worrying about the job market and broader economic conditions, they tend to pull back from riskier investments, like cryptocurrencies, and history shows how quickly economic concerns can impact XRP's price. During the inflation surge of 2022, XRP stayed well below $1 for much of the year. Similarly, when President Donald Trump announced new tariffs in April 2025, XRP dropped roughly 15% in just one week on investor fears about the economy.

While XRP eventually bounced back, these examples illustrate just how volatile the token can be -- and how quickly negative economic news can send its price tumbling. For anyone thinking about buying XRP right now, it might be wise to watch the economy closely and be prepared for potential short-term dips before considering an entry.

Should you invest $1,000 in XRP right now?

Before you buy stock in XRP, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $649,037!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,086,028!*

Now, it’s worth noting Stock Advisor’s total average return is 1,056% — a market-crushing outperformance compared to 188% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 8, 2025

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.