Why XRP prices are falling

XRP price drops by 10%: Why did it fall?
Macroeconomic risks and other factors continue to put pressure on XRP
As investors digest potential risk factors related to new tariffs and inflationary pressures, XRP experienced another round of selling today. Recent economic data shows that inflation is higher than expected, and additional tariffs may worsen the situation.

The bull market in the cryptocurrency market is driven by expectations that easing inflation will pave the way for lower interest rates. Investors are withdrawing from high-risk investments to accommodate the possibility of interest rates remaining high for a longer period of time. XRP and other cryptocurrencies have also experienced a pullback, while Nvidia's recent earnings report and concerns about the valuation of AI stocks that rely on growth.

XRP Price Chart
XRP Price Trend Chart
From early November to mid January, Ripple's native assets surged by over 500%. However, recent performance indicates that momentum has been lost, and cryptocurrency has been consolidating in the $2-2.5 range ever since. It is worth noting that the cryptocurrency reached a local high of $3.39 in mid January.

At the same time, XRP has fallen nearly 25% in the past 7 days and plummeted by about 36% in the 30 day chart. However, what factors may lead to the recent decline of cryptocurrencies?
Why did Ripple prices fall today?
Recently, there may be several factors that have dragged down the price of Ripple (XRP). The following are possible reasons for recent losses:

The broader collapse of the cryptocurrency market
The recent cryptocurrency market crash proves that the pessimistic sentiment in the broader digital asset sector may be the reason for the recent performance of this asset. In terms of background, during the writing of this article, the global cryptocurrency market value has fallen by nearly 8%.

In addition, nearly $560 billion was lost in the market this week alone, indicating that investors' appetite for risk betting is weakening. The price of Bitcoin has dropped by over 8%, falling below the level of $79. Other top altcoins such as Ethereum, BNB, Solana, DOGE, etc. also fell by about 10% each.

Decreased online activity
The recent decline in XRP prices may be due to a decrease in online activity. In a recent analysis, renowned expert Ali Martinez emphasized this trend, which has gained significant attention from traders. Martinez shows that XRP network activity has decreased by 50% since December, with the number of active addresses on the network decreasing from 202250 to 101169.
This trend indicates that the decrease in online activity is a significant factor contributing to the recent decline in XRP prices. The decrease in active addresses indicates a decrease in transactions and overall participation on the XRP network.

The Uncertainty of Ripple and SEC Cases
Another key factor may be the delay in the settlement of the Ripple SEC case. The US Securities and Exchange Commission has begun to withdraw cryptocurrency lawsuits, and many top cases have been dismissed this week. However, due to the lack of official comments on the XRP lawsuit, it seems to have dampened investors' emotions.

However, top experts expect to find a solution in the first half of this year. As a background, in a recent X post, a top legal expert shared three key dates for the settlement of the Ripple SEC lawsuit, which sparked optimism in the market. What is the next step for XRP pricing?
With the significant decline of XRP, market experts have shared important insights with investors. In a recent X post, expert Rose Premium Signals hinted that it may drop to $1.2578, emphasizing that it is a key support area. However, analysts point out that if Ripple's token maintains this support level, it may target $3 next, followed by the $4.22 mark. At the same time, other experts predict that the price of Ripple will soon decline to $1.6. However, despite this, experts remain optimistic about the long-term trajectory of the token. In a recent X post, CasiTrades stated that the XRP price correction may end at the $2 mark, indicating a strong recovery in the future.