XRP's 30% Slump: Can It Rebound by 2025?

XRP, the native cryptocurrency of the Ripple network, has been experiencing a significant decline in recent weeks, with a drop of over 20% in a week and 30% over the past month. At the time of this report, XRP was trading at $2.15, having mostly held above $2 over the past month but struggling to maintain key levels. This volatility has sparked speculation about the cryptocurrency's next move and its potential trajectory by March 2025.

To gain insight into XRP's future price movement, we consulted ChatGPT, an AI model that outlined several possible scenarios that could shape the asset's price trajectory in the near term. ChatGPT highlighted several key factors that could influence XRP's trajectory in the coming months, including regulatory uncertainty, macroeconomic pressures, derivatives market trends, and on-chain activity.

Ripple's ongoing legal battle with the SEC is identified as a key overhang, dampening investor sentiment even as regulatory scrutiny eases for other firms. While other companies have seen SEC charges dropped, Ripple remains under legal pressure, keeping institutional investors cautious and limiting upside momentum. Broader economic turbulence, including U.S. President Donald Trump's tariff policies, has also fueled risk-off sentiment in financial markets, further weighing on speculative assets like XRP.

XRP's derivatives market data signals a bearish trend, with open interest down 4.78% and options open interest plunging 93.74%, indicating a sharp pullback in speculative trading. Long liquidations have surged, with $22 million wiped out in the past 24 hours, indicating that bulls are struggling to hold their positions. The failure to sustain higher prices despite optimism surrounding a potential spot XRP ETF approval is an indicator of the current bearish sentiment in the market.

On-chain data further supports this cautious outlook, as large holders have sold over 370 million XRP in the past four days, reflecting a shift in sentiment that could keep the asset under pressure unless buying momentum returns. Adding to the uncertainty, Ripple is set to unlock 1 billion XRP, increasing circulating supply and potentially amplifying selling pressure. With supply-side factors creating additional headwinds, XRP's ability to reclaim key price levels will be critical in determining whether it can stage a recovery or remain under pressure heading into March 202