In the world of cryptocurrency, the concept of capitalizing on dips in underperforming coins is a hot topic. This strategy has frequently yielded positive results for leading cryptocurrencies like Bitcoin and Ethereum.
But what can be said about XRP (CRYPTO: XRP)? Currently, it’s available at a reduced price of $1, having dropped substantially from its peak of $3.65 in the summer of 2025. Does this present an opportunity to “buy the dip” for XRP now?
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This Is Not Just a Dip
The core issue is that this situation seems to extend beyond a simple dip. In stock markets, a dip typically signifies a short-lived decrease in prices ranging from 5% to 10%. In the crypto sphere, that range can be adjusted to accommodate declines up to 20%.
However, in XRP’s case, we are witnessing a staggering pullback of 45% in just 2026. Additionally, it has been more than 70% down over the last year. This is not merely a dip; it’s indicative of a deeper issue. The duration of this downturn suggests it is far from “temporary.”
If you examine XRP’s performance over the past year, it resembles a cryptocurrency in freefall. Priced at $1, it is on the verge of passing through a critical psychological threshold for investors. If this happens, XRP might plummet to as low as $0.50, a level seen back in November 2024.
Can XRP Make a Comeback?
Nonetheless, many investors hold onto the hope that XRP will bounce back soon. There is currently a notable demand for XRP long positions in the financial derivatives market. Data from CoinGlass indicates that there are roughly three long positions for every short one, indicating bullish sentiment.
Moreover, in prediction markets, many traders anticipate that XRP could surpass the $1 mark this year. Currently, traders on Kalshi estimate a 29% chance for XRP to reach $1.50 in 2026 and a 16% likelihood of reaching $2.
However, could a sudden spike in XRP’s value be overly optimistic? The much-anticipated Clarity Act now seems to be facing setbacks, and it was anticipated to be the key factor that would propel XRP’s price higher this year. Until the Clarity Act is enacted, there’s little reason to consider XRP at these low prices.
Is Now the Time to Invest in XRP?
Before making a decision to invest in XRP, consider the following: