$XRP News: Why XRP Is Going Down Today and When it Will Go Up?

Why XRP Is Going Down Today: Key Reasons and When $XRP Will Go Up?

XRP price today is $2.77, reflecting a significant intraday decline of 11.27%. Over the past week, XRP has experienced a sharp drop of 14.05%, leaving investors questioning why is XRP dropping today. This decline can be attributed to a combination of legal uncertainties, macroeconomic factors, and market sentiment.

Source: CoinMarketCap

Why XRP is Going Down: Ripple Vs SEC and Market Sentiment

Ripple’s ongoing legal battle with the SEC continues to influence XRP news and market dynamics. Although a partial legal victory ruled that XRP is not a security when sold to retail investors, some institutional sales violated securities laws. Ripple’s Chief Legal Counsel, Stuart Alderoty, is set to discuss the XRP lawsuit, tokenization trends, and the company’s regulatory plans during XRP Community Day on January 28. The outcome of these discussions could shape Ripple’s strategy for 2025 and beyond.

Additionally, Ripple is preparing for the next phase of the XRP SEC case, with an important cross-appeal brief deadline set for April 16. Legal uncertainty has dampened investor confidence, leading many to wonder, “When XRP will go up?” Despite its potential in asset tokenization and partnerships like the one with U.K. asset manager abrdn, short-term volatility persists.

Macroeconomic Factors: FOMC Meeting 2025 and Market Predictions

The upcoming FOMC meeting 2025 on January 28-29 has further added to the bearish sentiment. Robust U.S. economic data suggests that the Federal Reserve is unlikely to cut rates, pressuring risk assets like cryptocurrencies. This uncertainty mirrors a 2.15% decline in U.S. stock futures and has contributed to the ongoing XRP crash.

Adding to the market jitters, Robert Kiyosaki Market Crash Prediction warns of an impending financial collapse in February 2025. Kiyosaki’s prediction has spurred a shift toward alternative assets like Bitcoin, gold, and silver. While XRP’s long-term utility is promising, these external factors have overshadowed its immediate prospects. All these factors somewhere resulted in crypto market crash. 

When XRP Will Go Up: Future Prospects and Predictions

Despite the current bearish trend, some developments suggest brighter days ahead. Businessman Eric Trump recently highlighted that U.S.-based crypto projects like XRP and HBAR could benefit from zero capital gains tax. This policy could attract domestic investors, bolstering XRP’s price prediction and regulatory outlook.

Moreover, political moves such as Senator Ted Cruz’s plan to overturn IRS rules on DeFi broker reporting may further strengthen crypto innovation. Coupled with Ripple’s advancements in tokenization and its $3.8 billion liquidity fund, XRP remains a strong contender in the crypto space.