Rising Fear in the XRP Market: Analysts Weigh In on Investor Sentiment

As concerns grow in the XRP market, Versan Aljarrah, founder of Black Swan Capitalist, notes that fear has returned as the price of the token experiences strain. Recently, XRP's price dipped below the $2 threshold, hitting approximately $1.83 before seeing a minor recovery. The market has exhibited high volatility, prompting many traders to exit positions quickly.

Key Takeaways

Fear returns to the XRP market as prices dip below $2, causing volatility.
XRP price experienced sharp fluctuations, causing gaps in liquidity.
Analysts warn that only knowledgeable investors will survive the current market conditions.
XRP's historical volatility affects investor psychology and holding behavior.
Institutional interest, particularly in new ETFs, helps stabilize the market.

XRP

Market Volatility Challenges Investors

Reports indicate that XRP's decline intensified following a broader market crash in early October, attributed to increasing tariff tensions between the United States and China. This situation triggered liquidations worth billions across various cryptocurrency exchanges. Different platforms recorded varied low prices during this tumultuous period—Kraken noted a low of $1.40 while Binance recorded a flash low of $0.76.

"Fear is back, and it always hits those who don’t understand what it means to hold XRP. Most won’t survive the engineered volatility ahead. The system shakes out the weak long before real valuation even begins." — Black Swan Capitalist (@VersanAljarrah) November 23, 2025

The extreme price swings have caused liquidity gaps in key areas, particularly a zone between $1.98 and $1.99, that traders are monitoring closely. Despite the chaotic price action, XRP was priced around $2.22, showing a slight increase of about 1.8% within the last 24 hours. In subsequent reports, XRP was noted to be trading close to $2.24 amid a rebound. Over the past three days, the token rallied more than 18%, showcasing how rapid sentiment changes can occur in the market.

Aljarrah emphasizes that fear in the market tends to affect those unfamiliar with XRP and warns that many will struggle to endure the structured volatility. He believes that the system tends to push out weaker hands before true market valuation occurs.

The Role of History and Investor Psychology

Market analysts attribute XRP's tumultuous journey to its irregular historical performance. The token saw minimal activity in 2017, only to surge nearly 70,000%, followed by drops of up to 95% at certain points.

XRP Price Chart XRP/USD is currently trading at $2.21. Chart: TradingView

In 2024, XRP experienced a similar pattern with a quiet year followed by a dramatic rise exceeding 600% near year's end. This erratic history complicates the holding strategy for many investors, as people often sell prematurely, often missing significant upward movements.

Support levels are being carefully monitored, with crucial buffers identified at $1.95, $1.75, and $1.60. On the upside, some analysts predict a recovery, possibly reaching $4 by 2026, with long-term targets of $13 and $27. It's important to note that these forecasts are not guarantees and rely on consistent market conditions and ongoing interest.

"While $XRP jumped 17% in the last 72 hours, whales used the move to lock in profits, selling more than 180 million tokens." — Ali (@ali_charts) November 25, 2025

As larger holders have taken profits during the recent rebound, reports indicate that whales holding between 1 million and 10 million XRP sold over 180 million tokens, reducing their total to approximately 4.74 billion XRP. Such selling activities exert additional pressure even while prices are attempting to rebound.

On a positive note, institutional inflows seem to validate the market. Reports indicate that the Franklin Templeton and Grayscale XRP ETFs launched in the United States recently, attracting a combined $130 million in positive flows on their debut, helping to balance the selling pressure. On Monday, net inflows into U.S. XRP ETFs reached $164 million, which supported a gain of more than 7% in specific trading scenarios over a 24-hour span.

Image sourced from Pexels, chart from TradingView