Should You Buy XRP While It's Under $4?

Source The Motley Fool

The XRP (CRYPTO: XRP) cryptocurrency was a pretty disappointing investment for a long time. From January 2022 to the end of 2023, the digital coin followed trendsetter Bitcoin (CRYPTO: BTC) lower and then sideways, underperforming the S&P 500 (SNPINDEX: ^GSPC) stock market index during the inflation panic. XRP continued to struggle in 2024 while Bitcoin and the stock market surged higher.

And then the coin formerly known as Ripple found new life. The price per XRP coin has more than quintupled from Nov. 11 to Jan. 21:

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

XRP Price Chart

XRP Price data by YCharts

I thought XRP looked promising when it was worth less than $0.60 per coin, five months ago. I still called it a good buy in mid-December, just below the $3 price point. Has XRP peaked in January, or does this cryptocurrency have some rocket fuel left to burn?

Let's take a look.

Why XRP is rallying right now

XRP's price didn't rise in a vacuum. The cryptocurrency has several value-boosting balls in the air.

  • The second Trump administration has promised to give cryptocurrencies plenty of support, starting with a crypto-friendly name to lead the securities and exchange commission. As the third-largest cryptocurrency by market cap today, and with a high-profile SEC lawsuit still working its way through the court system after more than four years, that's potentially very good news for XRP investors.
  • Ripple Labs recently launched an XRP-base stablecoin called Ripple USD (CRYPTO: RLUSD). This digital cash alternative will make the RippleNet international payment system more stable and easier to use, especially for large organizations sending million-dollar payments across foreign borders.
  • Among other features, the Ripple USD stablecoin can be used to "tokenize" a variety of real-world assets. Beyond digital dollars, it can then send ownership contracts for many investment securities to international buyers.
  • I'm not out of helpful Ripple USD features yet. The stablecoin is compatible with both XRP and Ethereum (CRYPTO: ETH), building a bridge between two of the largest and most popular cryptocurrency systems. More specifically, the Ethereum connection gives Ripple USD and XRP access to the decentralized finance market in a whole new way.
  • After last year's introduction of exchange-traded funds (ETFs) tracking the price of Bitcoin and Ethereum, another wave of spot-price crypto ETFs could roll in before the end of 2025. With a $182 billion market cap on January 21, XRP is near the top of the ETF wishlist. These funds promise to boost crypto prices by allowing new investor classes to pour funds into the related crypto ETFs. Several financial management firms have indeed already filed the paperwork to start the SEC's review process for XRP-based ETFs.
  • The number of active XRP accounts and XRP transactions soared in December. In other words, the thriving RippleNet payment system supports an investment thesis focused on real-world usage of the thing XRP was always meant to do.

None of these value-boosting moves are surprising to longtime XRP watchers. Still, there's a world of difference between hoping for a more crypto-friendly regime and actually installing one. Likewise, it makes sense to stay calm about XRP's long-term future until it actually rolls out supporting features like the Ripple USD stablecoin and tokenized contract transfers.

Can XRP keep climbing the crypto mountain?

I can't promise that XRP's price chart will slant drastically upward all year long. However, the crypto market's 15-year history suggests that most of the leading coins should do well in 2025 and XRP has several price-pushing tools of its own.

So I won't be surprised if XRP continues to climb past the $4 benchmark fairly soon. At the same time, I'm not entirely sure that XRP deserves to be among the three largest crypto names in the long run. So there may be some turbulence ahead, and XRP could face a painful price correction at some point. This high-flying crypto darling is not for the weak of heart.

XRP is one of the largest holdings in my own crypto portfolio after the recent price surge, but I haven't bought any new coins since December 2020. I'm happy to hold those coins for many years, and you may want to start an XRP position if you haven't already.

However, it's not a slam-dunk top choice right now. Skyrocketing coin prices also increase the risk of incoming price cuts, if one or more of the ongoing growth catalysts don't work out as expected. I have more promising ideas for fresh crypto investments these days.

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 Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $901,323!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

Learn more »

*Stock Advisor returns as of January 21, 2025

Anders Bylund has positions in Bitcoin, Ethereum, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin To Face ‘One Last Speed Bump’ Before Rally To $140,000 – AnalystBitcoin (BTC) is attempting to reclaim a crucial level as support, which could propel its price to its local range high.
Author  NewsBTC
6 hours ago
Bitcoin (BTC) is attempting to reclaim a crucial level as support, which could propel its price to its local range high.
placeholder
Australia hands Tesla lifeline with May sales surge, struggles persist elsewhereAustralia just gave Tesla something it hasn’t had in a while—relief. The company said on Tuesday that it sold 3,897 electric vehicles in Australia in May 2025, its best monthly performance in nearly a year, according to data reported by CNBC.
Author  Cryptopolitan
6 hours ago
Australia just gave Tesla something it hasn’t had in a while—relief. The company said on Tuesday that it sold 3,897 electric vehicles in Australia in May 2025, its best monthly performance in nearly a year, according to data reported by CNBC.
placeholder
Bank of England Governor Bailey releases more aggressive monetary policy,Will the British pound continue to rise or turn around and fall?The latest International Monetary Fund (IMF) report, "World Economic Outlook," shows that the UK economy has demonstrated unexpected resilience, leading to an upward revision of the GDP growth forecast for 2025 from 1.1% to 1.2%.
Author  TradingKey
6 hours ago
The latest International Monetary Fund (IMF) report, "World Economic Outlook," shows that the UK economy has demonstrated unexpected resilience, leading to an upward revision of the GDP growth forecast for 2025 from 1.1% to 1.2%.
placeholder
GBP/JPY Price Forecast: Seems poised to build on momentum beyond 195.00 markThe GBP/JPY cross builds on the previous day's goodish rebound from the 192.75-192.70 area, or over a one-week low, and gains positive traction for the second straight day on Wednesday.
Author  FXStreet
6 hours ago
The GBP/JPY cross builds on the previous day's goodish rebound from the 192.75-192.70 area, or over a one-week low, and gains positive traction for the second straight day on Wednesday.
placeholder
USD/CAD Price Forecast: Tests initial support near 1.3950, followed by nine-day EMAThe USD/CAD pair is retracing its recent gains registered in the previous session, trading around 1.3710 during the European hours on Wednesday. The daily chart's technical analysis suggested a persistent bearish sentiment, as the pair consolidates within the descending channel pattern.
Author  FXStreet
6 hours ago
The USD/CAD pair is retracing its recent gains registered in the previous session, trading around 1.3710 during the European hours on Wednesday. The daily chart's technical analysis suggested a persistent bearish sentiment, as the pair consolidates within the descending channel pattern.
goTop
quote