XRP Faces 35% Decline Amid Legal Progress and Bearish Sentiment

XRP, the cryptocurrency associated with Ripple, is currently experiencing a mix of legal progress and market challenges. The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is approaching its conclusion, with a resolution anticipated within the next 60 days. This development has sparked renewed optimism for the approval of an XRP exchange-traded fund (ETF), which could potentially boost market confidence.

However, the price performance of XRP tells a different story. Since the beginning of 2025, XRP has seen a 35% decline, making it one of the most significant drops among major cryptocurrencies. Despite being part of the U.S. strategic reserve alongside other prominent cryptocurrencies like Bitcoin, Ethereum, Cardano, and Solana, XRP's performance has been lackluster.

Market sentiment has undergone a significant shift. A recent bet on Polymarket indicates that the likelihood of XRP reaching a new all-time high before July has dropped from nearly 90% to just 4%. This represents the lowest confidence level ever recorded for XRP's price growth in the first half of 2025.

Adding to the market's volatility, a substantial transaction involving 40 million XRP, valued at approximately $83.5 million, was detected by Whale Alert, a blockchain tracking service. The funds were transferred from Bithumb, South Korea’s second-largest crypto exchange, to an anonymous wallet. This large-scale withdrawal has raised questions about potential market impacts and the motivations behind such significant transfers.

Renowned trader and market analyst Peter Brandt has expressed a bearish outlook for XRP. Brandt compared XRP’s current speculative value to that of Beanie Babies and Pet Rocks, suggesting it holds little intrinsic worth. He tweeted, “Your favorite Beanie Baby/Pet Rock crypto displays a classic complex H&S top. This could become bullish if $3.0 is exceeded; otherwise, expect a decline to $1.07. If you have an issue with this, take it up with Magee and Edwards. $XRP.” Brandt’s technical analysis suggests that XRP could face a price drop unless it can reclaim the $3 mark, a level many traders consider crucial.

Despite the legal progress and potential ETF approval, the market challenges and bearish sentiment surrounding XRP present a complex picture. The significant withdrawal and Brandt’s bearish prediction add to the uncertainty, making it difficult to predict XRP’s near-term performance. The resolution of the legal battle and the market's reaction to it will be key factors in determining XRP's future trajectory.