XRP Drops 34%. Should You Buy When the Price Drops?

Electronic Money XRP (CRYPTO: XRP) reached a record price in several years of $3.31 per coin in January 2025. By May 30, the coin had fallen 34% to $2.18 per coin. Therefore, XRP investors face a dilemma: Is this electronic money an easy investment at this low price, or will the price continue to fall? This is how I see the issue.

How XRP Has Soared This Winter Two events have driven the market price of XRP from November 2024 to January 2025. Together, they supported a third event that has the potential to be a game changer. Trump's campaign in the 2024 presidential election includes strong support for Electronic Money. As a result, many cryptocurrencies soared after the election, as the new administration promised to update regulations on Electronic Money, promote cryptocurrency mining on U.S. soil, and more. Top names like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) recorded double-digit price increases in November, and Dogecoin (CRYPTO: DOGE) more than doubled. But none of them could keep up with XRP, as the previously known Ripple coin surged by 255%. Trump's camp also wants to establish a strategic Electronic Money reserve fund, similar to the physical gold reserve fund that stabilizes the economy at Fort Knox. Talks about this future market-driving momentum have been steadily increasing as the inauguration approaches. Cryptocurrency investors anticipate a "Trump bump" from the government's large-scale cryptocurrency order, perhaps as early as inauguration day, January 20. XRP is seen as a potential addition to the apparent holdings of Bitcoin, Ethereum, and Dogecoin of this hypothetical Electronic Money reserve fund, so good times continue for XRP investors. A more cryptocurrency-friendly administration and the expected inclusion of XRP in federal cryptocurrency investments have led to an inevitable conclusion. The lawsuit from the Securities and Exchange Commission (SEC) has hung over XRP for four years and must come to an end. This could be seen as the biggest price-driving momentum of all, opening the domestic business market for XRP and Ripple Labs in a whole new way.

Why XRP Falls in Spring The price of XRP peaked a few days before the inauguration. The prices of Ethereum and Dogecoin have also fallen by 27% or more since January 18. Bitcoin has decreased by 25% but has recently regained momentum, reaching a new all-time high last week. None of these top electronic money have experienced a boost from Trump, even though the Republican Party holds a majority in both the Senate and the House of Representatives. Even the Supreme Court is leaning towards the Republican Party these days. Despite this overwhelming power base, Trump's team has not done much to support Electronic Money so far. The Strategic Bitcoin Reserve was announced in March, along with a smaller Digital Asset Reserve consisting of cryptocurrencies not named Bitcoin. But this is not the big electronic money buying frenzy that many investors were hoping for. Instead, these two electronic money investment categories will largely only manage existing federal electronic money holdings. More coins and tokens will primarily be added as government agencies collect them from criminal court proceedings. That is not what the XRP faction hoped for. The dream of a strong federal spending spree on XRP is dead. Meanwhile, economic instability has weighed heavily on all types of investment markets this spring. People are worried about tariffs, trade conflicts, possibly the return of soaring inflation rates, etc. This contributes to creating an unfavorable environment for risky investment ideas, including most of the electronic money market. XRP's focus on international remittance services is particularly unhelpful, as cross-border payment volumes may fall sharply in the coming years. Don't Worry About Summer -- Where Will XRP Go in the Long Run? Despite the unstable economy and the unpredictable support from the government, XRP still has some promising features. The SEC lawsuit has almost been resolved and the Digital Asset Stockpile has emerged. Some financial companies have filed to open exchange-traded funds based on XRP. Ripple Labs has launched a stablecoin Ripple USD (CRYPTO: RLUSD) to streamline the global management of payment processing funds. And the RippleNet payment service, where XRP plays multiple roles in the cash transfer process, sees nearly a million payment transactions every day. This number is up from around 150,000 transactions per day two years ago. Overall, these characteristics make XRP one of the top 5 electronic money that I would buy during a downturn. Some people may say that the current fall of 34% is not large enough and you should wait for a deeper drop. Of course, that's perfectly fine. But on the other hand, I don't know where the price of XRP might go in the short term. The upcoming summer is a black box of continuous instability. Delaying might be the completely right idea, but this coin could also surge back in a short time. If you agree with my overall positive outlook on the long-term prospects of XRP, you may want to start a small position today and gradually increase it over time. Buying in thirds is a disciplined choice. That way, at least you will have some exposure to this exciting electronic money, with the option to add more without pressure if the price falls lower.