XRP Plunges 5% Amid Ripple's Network Woes and Market Uncertainty

Ripple's native token, XRP, has been experiencing a significant downturn, losing more than 5% in the past 24 hours and dampening investor expectations of a swift recovery towards the highly anticipated $3 threshold. As of report time, XRP was trading near $2.50, reflecting weakened market confidence and a sharp decline in daily trade volume, which plummeted by nearly 50%.

This downward trajectory follows a turbulent period for Ripple, exacerbated by a recent 64-minute network outage on February 4. The disruption temporarily halted block production on the Ripple Ledger, impacting over 80,000 XRP transactions. The incident has intensified concerns over the network's stability, with critics questioning its reliability.

Repeated outages fuel investor anxiety

This isn't the first time Ripple has faced major technical setbacks. The blockchain network experienced similar outages in September and November 2024, raising persistent concerns about its dependability. Industry observers argue that such recurring issues undermine investor trust, particularly as Ripple aims to position itself as a leader in cross-border payments and financial solutions.

Notably, Riot Platforms Vice President Pierre Rochard was among the vocal critics of the recent outage, publicly challenging Ripple's transparency. He called for a detailed post-mortem analysis of the incident, highlighting the growing pressure on Ripple to address its technical shortcomings and reassure investors.

Market-wide uncertainty weighs on XRP

Beyond Ripple's internal struggles, broader market conditions have also contributed to XRP's decline. The lingering impact of the controversial Trump tariff has kept investors cautious, limiting liquidity and driving down overall trading activity. XRP is not alone in this downturn—other major altcoins, including Solana (SOL) and Chainlink (LINK), have suffered similar losses, further signaling a risk-averse sentiment across the cryptocurrency market.

As uncertainty looms, traders are adopting a wait-and-see approach, hesitating to make significant moves until market conditions stabilize.

Can XRP reclaim $3?

Despite the current turbulence, some market analysts remain optimistic about XRP's long-term prospects. Several fundamental catalysts could drive a rebound, including renewed optimism surrounding Ripple's ongoing legal battle with the U.S. Securities