XRP Is Down More Than 50% in 6 Months. Has It Become a Bargain Buy?

The crypto markets have been in rough shape in recent months, with no clearer example of that than the performance of XRP (CRYPTO: XRP), one of the most valuable cryptocurrencies in the world. It's taken just half a year for digital currency to lose more than half of its value.

On Monday, it was trading at less than $1.50. The last time it was trading far lower than that was before the presidential election back in 2024. At that time, however, the cryptocurrency was surging in value rather than plummeting. There was plenty of excitement in the crypto world, which now appears to have faded.

But with XRP's potential to transform global finance, could now be a great time to add this leading cryptocurrency to your portfolio?

Image source: Getty Images.

A steep fall since July

In July of last year, XRP was rising sharply and reached an all-time high of $3.65. It was rallying for months as the excitement from President Trump's 2024 election win fueled expectations of broad crypto reform, lifting XRP and other cryptocurrencies in the process. And the Securities and Exchange Commission was also in the midst of settling its lawsuit against Ripple Labs, the company behind XRP. As a result, investor sentiment was high.

Since then, however, there has been a fairly persistent decline in value for XRP that has spanned several months. There hasn't been one major catalyst or sell-off that has been responsible for the cryptocurrency's decline, and it's instead been a gradual decline in value. Even the recent approval of spot XRP exchange-traded funds hasn't been enough of a reason to spark a rally in the cryptocurrency, which isn't a good sign.

The recent sell-off may suggest that XRP isn't as much of a mainstream cryptocurrency investment as Bitcoin is, which has declined a bit more modestly over the past six months -- it's down around 40%.

XRP is still a highly speculative asset to own

The problem with XRP is that, like with all other speculative assets, its price ultimately comes back down to investor expectations. And the cryptocurrency's initial surge after President Trump's election win may have set those expectations far too high.

While the government has taken a favorable stance on crypto, that hasn't resulted in a surge in demand for XRP. And while there is the hope that it can play a significant role in transforming global payments and bringing down transaction fees, there's simply no guarantee that it will play out the way XRP investors may hope. XRP is by no means a bargain, even with its recent decline, and it could still go lower this year.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy.