Ripple’s XRP has slipped below the $2.00 threshold for the first time in nearly three months, signalling growing unease across the digital asset market.
In the past 24 hours alone, XRP shed 0.56% to trade at $2.00, deepening a correction that began last week.
Since peaking at $2.17 on 19 June, XRP has declined, with prices briefly touching $1.90 before a slight rebound.
Source: CoinMarketCap
The downturn isn’t isolated. The global crypto market cap fell 2.6% over the same period, with several major assets posting double-digit weekly losses.
Analysts suggest the XRP decline is not due to internal weakness but rather part of a wider market correction driven by geopolitical instability and inflationary fears.
Iran-Israel conflict sends oil soaring, crypto markets into turmoil
The biggest external driver behind the ongoing crypto slump is the escalating conflict between Iran and Israel.
Tensions intensified on 22 June after the United States bombed three Iranian nuclear sites.
In retaliation, Iran fired missiles at Israeli targets and issued threats against US military bases in the Middle East.
Adding to the volatility, Iran’s parliament has voted in favour of closing the Strait of Hormuz, a crucial route for one-third of the world’s oil shipments.
Markets responded sharply. Brent crude prices surged 3%, and WTI futures hit a five-month high.
Rising energy prices typically increase inflation risks and reduce global liquidity, both of which tend to put pressure on high-risk assets like cryptocurrencies.
XRP part of a wider correction, not a stand-alone slump
While XRP’s fall to $2.00 has raised alarm among holders, analysts argue the decline mirrors broader market sentiment rather than signalling a fundamental flaw.
Bitcoin dropped 4.9% over the week, Ethereum lost 14%, and Solana fell 14.7%.
Meme tokens like Dogecoin declined by 14%, while Cardano and Sui saw losses of 15.7% and 20.3%, respectively.
BCH (Bitcoin Cash) also registered a 20.3% drop.
Despite the correction, XRP remains one of the better-performing assets on a yearly basis, up 310.4% compared to this time last year, outperforming even Bitcoin and Ethereum in relative gains.
Analysts still predict XRP could rally to $27
Technical analysts tracking XRP remain cautiously optimistic. EGRAG Crypto, a widely followed figure on X (formerly Twitter), suggested that XRP could reach between $6.70 and $13, with an extended target of $27 if historical fractal patterns repeat.
These predictions, while not guaranteed, are based on XRP’s tendency to stage large upward moves following extended consolidation periods.
Supporters argue XRP’s long-term strength lies in its real-world use cases — especially in cross-border payments and tokenised settlements — rather than daily price action.
Ripple Labs’ ongoing partnerships with financial institutions and expansion in Asia-Pacific markets are also seen as key growth drivers for the token’s adoption.
Still, short-term headwinds remain, and much depends on how the geopolitical situation unfolds.
Rising energy prices could continue to weigh on liquidity, while fears of global inflation may prompt further selloffs across digital assets.
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