Why XRP Is Going Down: Latest XRP News and Price Predictions (March 2025)

As of March 1, 2025, XRP, the native token of the XRP Ledger developed by Ripple, is experiencing a significant price drop, trading at approximately $2.13 - a 17% decline in the last 24 hours and a whopping 31% drop over the past month. This has left investors and the XRP community asking: Why is XRP going down? The answer lies in a mix of Ripple lawsuit updates, broader cryptocurrency market trends, regulatory uncertainty, and recent XRP news shaking investor confidence. Why Is XRP Price Down Today? Current XRP Price TrendsXRP’s current price of $2.13 reflects a turbulent period, with its market cap hovering around $24 billion, securing its spot as the fourth-largest cryptocurrency behind Bitcoin, Ethereum and Tether. Over the past week, XRP has shed 31% of its value, a stark contrast to its 250% surge over the last six months.XRP is certainly not being helped by the strong dollar and the general sell-off in the broader cryptocurrency market. As we reported earlier, Bitcoin has also fallen sharply, briefly dropping below $80,000 and testing four-month lows.Below, we explain in more detail why the XRP price is crashing this week.Why Is XRP Going Down?XRP’s recent decline can be attributed to a convergence of factors. Below are the key reasons why XRP is going down, contributing to bearish sentiment and selling pressure:Ongoing SEC Lawsuit Uncertainty: The regulatory cloud over XRP is a major factor weighing on its price. Ripple Labs (the company behind XRP) has been entangled in a lawsuit with the U.S. Securities and Exchange Commission (SEC) since December 2020. While Ripple scored a partial legal victory in mid-2024 – with a judge ruling that XRP is not a security for retail sales Broader Crypto Market Correction: XRP’s downturn has coincided with a wider pullback in the crypto market. Investor sentiment across cryptocurrencies turned bearish in early 2025, leading to a market-wide sell-off. For context, global crypto market cap fell by roughly 6-8% in late February.Large Whale Sell-Offs and Unlocks: Another contributor to XRP’s price drop is the activity of large holders (whales) and token unlocks that increase supply. On February 3, 2025, Ripple released 1 billion XRP from escrow (part of its scheduled monthly unlocks). This influx of new tokens into the market triggered a sharp sell-off – XRP’s price plunged 24.6% within a day following the release.

Mar 1, 2025 - 16:16
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Why XRP Is Going Down: Latest XRP News and Price Predictions (March 2025)

As of March 1, 2025, XRP, the native token of the XRP Ledger developed by Ripple, is experiencing a significant price drop, trading at approximately $2.13 - a 17% decline in the last 24 hours and a whopping 31% drop over the past month.

This has left investors and the XRP community asking: Why is XRP going down? The answer lies in a mix of Ripple lawsuit updates, broader cryptocurrency market trends, regulatory uncertainty, and recent XRP news shaking investor confidence.

Why Is XRP Price Down Today? Current XRP Price Trends

XRP’s current price of $2.13 reflects a turbulent period, with its market cap hovering around $24 billion, securing its spot as the fourth-largest cryptocurrency behind Bitcoin, Ethereum and Tether. Over the past week, XRP has shed 31% of its value, a stark contrast to its 250% surge over the last six months.

XRP is certainly not being helped by the strong dollar and the general sell-off in the broader cryptocurrency market. As we reported earlier, Bitcoin has also fallen sharply, briefly dropping below $80,000 and testing four-month lows.

Below, we explain in more detail why the XRP price is crashing this week.

Why Is XRP Going Down?

XRP’s recent decline can be attributed to a convergence of factors. Below are the key reasons why XRP is going down, contributing to bearish sentiment and selling pressure:

Ongoing SEC Lawsuit Uncertainty: The regulatory cloud over XRP is a major factor weighing on its price. Ripple Labs (the company behind XRP) has been entangled in a lawsuit with the U.S. Securities and Exchange Commission (SEC) since December 2020. While Ripple scored a partial legal victory in mid-2024 – with a judge ruling that XRP is not a security for retail sales

Broader Crypto Market Correction: XRP’s downturn has coincided with a wider pullback in the crypto market. Investor sentiment across cryptocurrencies turned bearish in early 2025, leading to a market-wide sell-off. For context, global crypto market cap fell by roughly 6-8% in late February.

Large Whale Sell-Offs and Unlocks: Another contributor to XRP’s price drop is the activity of large holders (whales) and token unlocks that increase supply. On February 3, 2025, Ripple released 1 billion XRP from escrow (part of its scheduled monthly unlocks). This influx of new tokens into the market triggered a sharp sell-off – XRP’s price plunged 24.6% within a day following the release.