XRP (Ripple) Is Down 34%. Should You Buy the Dip?

Anders Bylund, The Motley Fool

Sun, Jun 1, 2025, 8:03 AM 5 min read

• XRP gained 255% from November 2024 to January 2025, outpacing Bitcoin, Ethereum, and Dogecoin during the post-election crypto rally.

• Economic uncertainty and concerns about international payment volumes create headwinds for XRP's cross-border payment focus.

• A dollar-cost averaging approach, such as buying in thirds, could help you build long-term exposure while mitigating XRP's short-term volatility.

• 10 stocks we like better than XRP ›

The XRP (CRYPTO: XRP) cryptocurrency reached a multiyear record price of $3.31 per coin in January 2025. By May 30, the coin had retreated 34% to $2.18 per coin.

So XRP investors face a dilemma: Is the cryptocurrency a no-brainer buy at these lower prices, or will the price drop continue? Here's how I see it.

Two events boosted XRP's market price from November 2024 to January 2025. Together, they supported a third event with game-changing potential.

• The Trump campaign in the 2024 presidential election included heavy support for cryptocurrencies. As a result, many cryptos soared after the election, as the incoming administration had promised to update crypto regulations, promote crypto mining on American soil, and more. Leading names like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) posted double-digit price gains in November, and Dogecoin (CRYPTO: DOGE) more than doubled. But none of them could keep up with XRP, as the coin formerly known as Ripple gained 255%.

• Trump's camp also wanted to set up a strategic cryptocurrency reserve, similar to the economy-calming reserve of physical gold in Fort Knox. Chatter about this future market-booster kept rising as the inauguration drew near. Crypto investors expected a "Trump bump" from the resulting influx of government-scale cryptocurrency orders, perhaps as early as the January 20 inauguration date itself. XRP was seen as a likely addition to the obvious Bitcoin, Ethereum, and Dogecoin holdings of this hypothetical crypto reserve, so the good times kept going for XRP investors.

• A more crypto-friendly administration and the anticipated inclusion of XRP in federal crypto investments led to one inescapable conclusion. The Securities and Exchange Commission (SEC) lawsuit that has been hanging over XRP's head for four years would have to go away. This is arguably the biggest price-booster of them all, opening up the domestic business market for XRP and the Ripple Labs organization in a whole new way.

XRP's price peaked a couple of days before the inauguration. Ethereum and Dogecoin have also seen price drops of 27% or more since January 18. Bitcoin fell 25% but gained some momentum more recently, reaching new all-time highs last week.