XRP Crash or Explode? How We Define These Views

2025-04-07

The XRP price condition that has been experiencing periodic collapse since about two weeks ago is still ongoing.

A slight increase in the price percentage is not enough to significantly restore XRP, because XRP is still depressed below $2.

Observing the XRP price collapse event that could be triggered by the global trade war, how do we as investors view it? Is XRP being destroyed or is there hidden potential behind its crash?

XRP Price Condition

Over the last 24 hours, XRP has experienced a notable downward trend. The price started at approximately $2.13, maintaining a relatively stable position in the early hours. However, as the day progressed, selling pressure increased, pushing the price down in a steady decline.

By late afternoon and into the night, the downward momentum became more pronounced. There were a few minor attempts at recovery, seen in small price bumps, but they were short-lived and quickly followed by further drops.

xrp price condition

The most significant decline occurred in the early hours of the morning, around 4:30 AM, continuing into mid-morning. This period marked a sharp fall in price, bringing XRP down to around $1.80, a loss of more than 15% from the day’s high.

The overall tone of the market appears bearish, with consistent red lines on the chart indicating persistent negative sentiment or possibly a reaction to external market events.

The lack of a strong rebound suggests that investors might currently be cautious, possibly waiting for new developments or clearer signs of support before reentering the market.

At this point, XRP seems to be testing new lows, and unless there’s a shift in sentiment or positive news, the downward pressure could continue in the short term.

XRP Crash or Explode

Over the past seven days, XRP's price journey has been a tale of early strength followed by a sharp and unsettling decline.

At the start of the week, XRP showed signs of confidence. The price hovered steadily above $2.08, even climbing beyond $2.20 at its peak. This period, from April 1st to April 5th, reflected a relatively stable market.

The chart shows healthy green candles, indicating moderate buying pressure and a balanced pace of trading.

There were small surges here and there, suggesting that some traders were optimistic, perhaps anticipating a breakout.

xrp crash or explode

However, this calm didn't last. As April 6th approached, a subtle downward shift began. It wasn't dramatic at first, more of a soft decline, which might have appeared to some as a normal pullback. But then came April 7th, and that’s when things changed quickly.

Within a few hours, XRP’s price plunged from above $2.10 to $1.80, marking a sharp loss of value in a very short time. The clean transition from green to deep red on the chart highlights a sudden spike in selling pressure.

Read Also: How to Buy XRP (XRP)

Traders either rushed to lock in profits or reacted to negative sentiment or breaking news. This wasn’t just a dip, it was a crash.

By the end of these 7 days, it’s clear that XRP is not exploding upwards, but rather experiencing a strong downward correction. The drop is steep and decisive, with no immediate signs of a bounce or reversal.

How XRP Price Recovered to $2

After suffering a sharp decline to $1.80 on April 7, XRP found itself at a critical psychological and technical support level.

The dramatic price drop likely triggered a reaction from both retail and institutional traders who viewed the dip as a buying opportunity.

This is a common pattern in crypto markets, where sharp corrections are followed by short-term rebounds due to dip-buying behavior.

Despite the bearish sentiment, XRP had already shown strength earlier in the week, trading above $2.10 for several days.

This previous support turned into a magnet for recovery. As selling pressure eased and early buyers stepped in, the price began to climb back up, aiming to reclaim that familiar territory.

Additionally, market sentiment may have been influenced by external factors, such as:

Positive news coverage or developments (e.g., legal progress in Ripple's favor or exchange listing announcements).
Technical indicators reaching oversold conditions, prompting algorithmic and human traders to act.
Confidence is returning to the broader market, leading to inflows across altcoins, including XRP.

By regaining its footing and slowly retracing lost ground, XRP eventually recovered toward the $2.00 mark, signaling a potential return to stability.

This kind of rebound is typical after a strong sell-off, especially when there's underlying confidence in the asset or a broader crypto market recovery underway.

XRP’s recovery to $2 was likely driven by a combination of dip-buying interest, technical bounce from oversold levels, and positive sentiment returning after the crash.

The market saw value in XRP at $1.80, and this collective buying pressure helped pull the price back toward $2.

Final Note

After observing XRP’s price trend, it’s clear that XRP experienced a crash, not an explosion.

In the earlier part of the week, XRP maintained a stable and confident performance, trading comfortably above $2.00. There were moments of minor volatility, but overall, the market seemed optimistic. That changed suddenly on April 6 and worsened on April 7.

The price began to decline gradually, and by the morning of April 7, it had plunged sharply to $1.80. This steep fall within a short period is a clear indication of a crash, not a healthy correction or a breakout.

Although there were signs of a possible recovery as buyers began stepping in around the $1.80 mark, this rebound appears more like a technical bounce rather than a true reversal of trend.

The move back toward $2.00 reflects temporary dip-buying or market stabilization after a sharp drop, not a surge driven by strong bullish momentum.

There were no explosive gains, no breakout candles, and no upward rally that would suggest XRP was "exploding" in price.

Instead, the red-dominated chart, rapid decline, and lack of sustained upward pressure all point to a market crash.

FAQ

1. Did XRP crash recently?

Yes. XRP experienced a sharp decline in early April, falling from over $2.10 to $1.80 within a short time. This steep drop reflects a crash, likely caused by heavy selling pressure, negative sentiment, or sudden market developments.

2. Is XRP recovering from the crash?

Partially. After bottoming out around $1.80, XRP showed signs of technical recovery, rebounding toward the $2.00 mark. However, this rebound appears to be a short-term correction, not a full trend reversal, so caution is still warranted.

3. What caused the sudden drop in XRP price?

While the exact cause isn’t confirmed, such crashes are often triggered by a mix of:

Profit-taking by large holders ("whales")
Negative news or legal uncertainty (e.g., Ripple’s ongoing case with the SEC)
General crypto market downturns or corrections
Technical rejection at resistance levels

4. Does the price drop mean XRP is no longer a good investment?

Not necessarily. A crash can be a natural part of a volatile market cycle. Many investors see price dips as buying opportunities, especially if they believe in XRP’s long-term utility in global payments and cross-border transfers. However, risk management is essential.

5. Is XRP likely to explode in price soon?

At this moment, there’s no clear sign of an imminent explosion. While XRP has recovered slightly, it is still navigating post-crash territory. A strong upward breakout would require: