XRP May Face Sell-Off If History Turns Out True
2025-02-01
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In the last 24 hours, XRP has plunged below the critical $3 level, losing more than 10 cents in its free fall. The sharp decline might signal that XRP could repeat its history in February. Notably, XRP usually underperforms in the second month of the year.
Historical trends highlight February weakness
According to Cryptorank data, XRP has an average monthly return of -3.00% for February. Since 2014, XRP has only finished in the green four times, with the highest percentage return in 2022. In that year, XRP registered a 26.3% increase in value.
The other three years of positive performances were in 2016, 2019 and 2024, with average monthly returns of 23.8%, 1.13% and 17.1%, respectively.
Conversely, XRP performed poorly in 2014, with a 33.4% decline. Aside from 2017, 2018 and 2021, with a negative growth of 12.3%, 22.1% and 14.8%, respectively, all other declines were below 10%.DOGE Historical price data. Source: Cryptorank">
Market observers consider this a plus for XRP as any sell-off that will occur might not adversely impact the coin. While acknowledging history leans toward an average of 3% cumulative loss, XRP could still flip the pattern and close February in the green.
Analysts highlight the broader cryptocurrency dynamics, which indicate the new U.S. administration remains pro-crypto as an indicator.
Can XRP reverse course?
Additionally, Ripple’s move to get included in the proposed U.S. crypto strategic reserve, if it scales through, could transform the price outlook in a flash. This is because it could drive up demand for XRP and increase its value, pushing it to test the $4 mark.
Brad Garlinghouse, Ripple’s CEO, recently stated that the company was pushing for inclusion in line with the current administration’s interest in supporting American tech organizations. However, critics have pushed back at this narrative as largely self-serving.
As of this writing, XRP was trading at $2.98, a 3.69% decline in the last 24 hours. As investors slow down on market activities, the trading volume has dipped by 4.59% to $4.46 billion.