Monovex Brokers weigh in on why the market is watching XRP closely again

XRP is down — and not just a little. After a euphoric rally that sent the coin surging 255% in just two months, it’s now lost 34% of its value from its peak in January 2025. That’s a steep drop, but not unusual for an asset built on volatility and speculation.

Still, numbers alone don’t tell the whole story. Brokers from Monovex are dissecting the movements with sharp eyes, pointing to a combination of politics, courtrooms, and shifting investor sentiment behind the sudden cold snap in price. One of Monovex’s financial analysts breaks it down — and it’s not the usual script of fear or hype.

A Hot Winter and a Cool Spring

XRP reached $3.31 per coin in January, a level not seen since before the SEC lawsuit was filed in 2020. The lift was fueled by a post-election rally, where speculative capital flooded into digital assets expected to benefit from a crypto-friendly administration. And XRP wasn’t just catching the tide — it was leading it.

Bitcoin and Ethereum gained double digits. Dogecoin doubled. But XRP? It tripled. For a coin tied closely to institutional use cases like cross-border payments, that’s not typical behavior. It was fueled by more than market dynamics — it was political theatre turned financial opportunity.

Then came the fade. By the end of May, XRP fell back to $2.18, wiping out a third of its recent gains. Traders looking for the promised crypto boom under a Republican-majority government didn’t see the kind of legislative or fiscal moves they were banking on. 

What they got instead was a digital asset stockpile plan — a smaller, more cautious approach to holding crypto assets rather than deploying fresh capital.

SEC Lawsuit: Nearly Closed, But Not Over

A massive shadow has loomed over XRP since 2020: the SEC’s lawsuit alleging Ripple Labs violated securities laws. Progress has been slow, but legal analysts believe the case is close to resolution. That alone could stabilize the asset.

However, until the ink is dry, big money stays cautious. Institutional traders are happy to bet on tokens like Bitcoin and Ethereum that already enjoy more regulatory clarity. 

XRP, despite its growing utility, still feels like a riskier play in the eyes of compliance departments. And compliance is everything right now.

Use Case or Hype Machine? XRP’s Identity Crisis

XRP isn’t your meme token. It was built for speed and scale, specifically for bank-to-bank transfers, the kind that happens behind the scenes when someone wires money overseas. RippleNet, the network behind it, is growing. In fact, it’s processing close to one million transactions per day, up significantly from just 150,000 two years ago.

That kind of scale would be the envy of smaller altcoins. But ironically, that utility is also part of XRP’s current drag. With global payment volumes potentially tightening in a time of economic uncertainty — tariffs rising, GDP forecasts slowing, and inflation still unsettling markets — the coin’s core use case feels less urgent for now.

Add to that the delayed optimism over its new Ripple USD (RLUSD) stablecoin, and the momentum simply lost steam.

Buy the Dip? Maybe, But Not All at Once

Buying XRP now is like entering a high-stakes chess game in the middle. You know the pieces, but you don’t see the next move yet. For those with a long-term view, Monovex analysts suggest taking a measured dollar-cost averaging approach.

Instead of buying a large stake upfront, consider splitting your entry in thirds:

• One now, while the price is still under pressure
• Another if it dips further (say, below $2)
• The final third if and when the price rebounds on positive legal or legislative news

This method reduces risk, manages emotional trading habits, and lets you stay in the game without overcommitting to the unknown.

ETF Rumors, Institutional Attention, and What Comes Next

There’s chatter about financial firms preparing to launch XRP-focused ETFs. That’s not just a checkbox for Wall Street — it’s a sign that XRP is maturing.

If that happens, XRP would join the club of Bitcoin and Ethereum, which now benefit from the ETF stamp of legitimacy. It also gives traditional investors a path into the asset without opening a crypto wallet or navigating token exchanges. That kind of access could shift price dynamics in ways we haven’t seen before.

For now, these are just filings — not approvals. But the direction is telling.

Final Thought: Wait, Watch, or Act Cautiously

It’s easy to get swept up in charts, headlines, and what-if scenarios. But at the core, XRP is straddling two worlds: speculative crypto hype and a serious financial infrastructure tool.

Those who buy in now aren’t making a mistake — they’re just making a calculated move. But it only makes sense if you’re ready to hold through more potential dips, legal updates, and macroeconomic surprises.

It’s not a race. It’s a test of conviction. And right now, conviction is cheap — just like XRP.