Even though XRP has strong support behind it, its price is falling. The coin is dropping about 2% today and is down nearly 30% over the past year, making many in the community worry that the decline could continue.

However, market watcher Brett believes this drop may be intentional, designed to deter small investors and potentially lead to a future price rise. Let’s examine the current state of XRP and identify potential factors driving the current trend.

XRP Drops After Strong Start

XRP started 2025 with a strong rise, reaching prices that hadn’t been seen in almost seven years. This early jump above $2 excited many people, as it seemed like Ripple’s token was making a big comeback. But the climb didn’t last. XRP soon lost strength and fell back below the $2 mark. Currently, it is trading around $2.20, down approximately 2% today. Even with today’s drop, the token has made small gains over longer periods—up 1.29% over the past week and 4.5% over the past month.

Analysts See XRP Drop as Setup for Rally

While XRP’s price is down, some market watchers aren’t too concerned. Analyst Brett thinks the drop isn’t a sign of weakness, but a tactic to push out less confident investors. He believes the true value of XRP isn’t shown in the price right now. In his words: “Price isn’t the truth. Price is just a distraction.” 

Alongside this view, data from CoinGlass reveals that XRP’s open interest in futures has dropped more than 4%, falling to $3.81 billion. That drop suggests traders are pulling back for now, which often happens before a larger price shift. According to Brett and others, this could be the calm before a new rally.

More Than Just Market Trends

XRP’s price has seen fluctuations recently, but this doesn’t tell the whole story. While market conditions have been unpredictable, Ripple continues to make progress on several important initiatives that could impact the token’s future performance.

Ripple is quietly advancing behind the scenes. The company is securing new banking partnerships, enhancing its role in cross-border payments, and making strides in regulatory efforts. These developments could play a key role in increasing XRP’s real-world adoption and trust over time.

Investor Sentiment Is Mixed but Watching Closely

Many investors remain cautious, but growing interest in Ripple’s progress has sparked hope. As the lawsuit nears a conclusion and partnerships grow, more eyes are turning back to XRP, watching for signs of a major comeback.

XRP Lawsuit Resolution Could Be a Game Changer

One of the most significant updates is the anticipated settlement of Ripple’s legal case with the U.S. Securities and Exchange Commission (SEC). Many believe a final decision could lift a major weight off XRP and open the door for bigger market participation—especially from large investors and institutions.

Final Thoughts

Although XRP’s price has dropped recently, Ripple is making great progress. The company is establishing new banking partnerships, working on regulatory compliance, and expanding its presence in cross-border payments. Experts believe the price drop could be temporary and may lead to a rise soon, especially with the SEC lawsuit nearing completion. XRP’s future looks bright, and a positive market shift may be coming.