Understanding XRP correction key levels and market sentiment
19th April 2025 – (New York) XRP has seen a steep decline of over 40% in the past few weeks, following its peak in early January when it reached an all-time high of $3.40 per token. As of 10th April, XRP is trading at $1.96, marking a significant drop from its January highs. The last time XRP traded above $3 was in January 2018.
The broader derisking in the U.S. economy has been a major driver of this correction, triggering a global risk-off sentiment. Despite this bearish macroeconomic outlook, XRP’s fundamentals remain strong, with institutional backing helping the token hold up better than many other altcoins.
XRP is primarily used for facilitating fast and low-cost cross-border transactions. Built on the XRP Ledger, it operates without mining and utilizes a unique consensus mechanism that supports up to 1,500 transactions per second with minimal fees. Its efficiency and low energy consumption distinguish it from proof-of-work blockchains like Bitcoin and Ethereum.
Key support levels to watch in the short term include $1.75 and the $1.40 range, which previously showed significant price accumulation. Monitoring these levels will provide insight into whether XRP’s price will continue its downward trend, consolidate, or reverse.
On the daily chart, XRP remains in a bearish trend, despite temporary bullish momentum sparked by news-driven events, such as former President Trump’s mention of XRP in a potential “Crypto Reserve” proposal. For a bullish case to emerge, XRP would need to form higher lows and fail to reach previous price lows, signalling a potential sentiment shift in the market.
While the pullback is largely sentiment-driven, XRP continues to stand out for its strong use case in enabling faster and cheaper international payments, particularly in regions with thin liquidity. This underlying utility could help stabilise its price once broader market conditions improve.