XRP Plummets 28% in a Week: Is This 23,000% Ten-Year Winner a Buy-the-Dip Opportunity?
By Financial Desk | February 1, 2026
In the volatile world of cryptocurrencies, few assets boast a track record as impressive as XRP, the native token of the Ripple network. Over the past decade, XRP has surged an astonishing 23,000% from its humble beginnings, transforming early investors into millionaires. Yet, as of early February 2026, the cryptocurrency finds itself in familiar territory: down 28% over the past week amid broader market jitters. With XRP trading around $0.45, analysts and investors are divided—should savvy traders buy the dip, or is this a sign of deeper troubles ahead?
A Decade of Dramatic Gains and Regulatory Battles
XRP’s journey began in 2012 as part of Ripple’s vision to revolutionize cross-border payments. Launched at a fraction of a penny, it quickly gained traction among financial institutions seeking faster, cheaper alternatives to traditional systems like SWIFT. By 2018, XRP had rocketed to an all-time high of $3.84, fueled by hype around blockchain adoption.
However, the path wasn’t smooth. In late 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple Labs, alleging that XRP sales constituted unregistered securities offerings. The legal saga dragged on for years, creating uncertainty that capped XRP’s upside. A partial victory came in July 2023 when a federal judge ruled that secondary market sales of XRP were not securities, sending prices soaring 70% overnight. Despite ongoing appeals, this ruling has bolstered confidence in XRP’s legitimacy.
Fast-forward to 2026: XRP’s decade-long compound annual growth rate (CAGR) remains enviable at over 100%, dwarfing Bitcoin’s performance in the same period. From $0.002 in 2016 to $0.45 today, the math checks out— a $1,000 investment would now be worth over $225,000.
Why the 28% Drop Now?
The recent plunge mirrors a broader crypto market correction. Bitcoin dipped below $90,000 last week, dragged down by macroeconomic fears including persistent inflation and delays in anticipated Federal Reserve rate cuts. XRP, often correlated with BTC, amplified the sell-off due to its own catalysts.
Ripple’s latest quarterly report highlighted robust adoption: over 70 financial institutions now use RippleNet, processing $30 billion in volume last quarter alone. Yet, profit-taking after a 150% rally from November 2025 lows has pressured prices. Whispers of a potential SEC appeal resolution—or escalation—have also spooked traders. On-chain data from Glassnode shows $150 million in XRP liquidations last week, the highest since December 2024.
Bullish Case: Buy the Dip?
Proponents argue this dip is a golden opportunity. “XRP is undervalued relative to its utility,” says crypto analyst Michaël van de Poppe. “With Ripple’s On-Demand Liquidity (ODL) expanding in Asia and Latin America, real-world usage is ramping up.” Recent partnerships with banks in Brazil and Japan underscore this.
Technical indicators support bulls: XRP is testing key support at $0.42, with RSI oversold at 25. Historical patterns show dips of 25-30% often precede 2-5x rallies. Moreover, Ripple’s escrow releases—1 billion XRP monthly—provide predictable supply dynamics, unlike Bitcoin’s halving hype.
“At current levels, XRP offers asymmetric upside. A return to $1 is conservative if regulatory clouds lift.” – Lark Davis, Crypto Investor
The Risks: Why Caution Prevails
Skeptics aren’t convinced. The SEC case lingers, with a possible Supreme Court review on the horizon. XRP’s centralized nature—Ripple controls ~40% of supply—draws criticism from decentralization purists. Competition from Solana and stablecoins like USDT in payments could erode XRP’s edge.
Macro headwinds loom large: rising U.S. Treasury yields signal tighter liquidity, and geopolitical tensions in the Middle East threaten risk assets. “XRP’s 23,000% gain is history; future returns will be muted,” warns JPMorgan analyst Nikolaos Panigirtzoglou.
Whale activity adds uncertainty—large holders offloaded 500 million XRP last month, per Whale Alert.
Key Stats at a Glance
- Current Price: $0.45 (down 28% WoW, 12% MoM)
- Market Cap: $25.5 billion (7th largest crypto)
- 24h Volume: $2.8 billion
- 10-Year Return: +23,000%
- Circulating Supply: 56.7 billion XRP
What Lies Ahead?
Investors face a classic risk-reward dilemma. Short-term, a Bitcoin rebound could lift XRP toward $0.60 resistance. Longer-term, full regulatory clarity and global adoption could propel it past $2. But volatility remains king—crypto portfolios should never exceed risk tolerance.
As one trader quipped on X: “XRP dips are where legends are made.” Whether this 28% pullback joins that lore or signals caution depends on your thesis. DYOR, as always.