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XRP Plunges Below $3: Is the 2025 Rally Already Over?

XRP Plunges Below $3: Is the 2025 Rally Already Over?

Author:
foolstock
Published:
2025-08-20 04:47:50
11
2

XRP just got hammered—again. The token nosedived below the $3 threshold, wiping out recent gains and leaving traders scrambling.

What's Behind the Bloodbath

Market volatility slammed digital assets across the board, but XRP took an extra beating. Regulatory uncertainty continues hanging over Ripple's head like a guillotine—because nothing says 'stable investment' like ongoing lawsuits.

2025 Outlook: Hope or Hype?

Despite the brutal dip, analysts haven't completely abandoned their bullish targets. Some still point to potential institutional adoption and technical rebounds as catalysts for new highs. Because if there's one thing crypto loves, it's ignoring fundamentals for hopium-fueled comebacks.

Key resistance levels loom overhead, but breaking through requires more than just Twitter hype and diamond-hand emojis. The real question isn't whether XRP can recover—it's whether anyone still believes the 'this time it's different' mantra after a decade of rinse-and-repeat cycles.

Palantir stock plunges as tech sell-off intensifies

Among the companies that actually take artificial intelligence (AI) and apply it in the real world, Palantir has been a notable standout, delivering massive revenue and earnings growth while rivals likeandare still operating DEEP in the red and seeing their sales stagnate.

That's led investors to pile into Palantir stock, which has reached an astronomical valuation of nearly 500 times earnings. That's not a particularly sustainable valuation, and as concerns mount after recent jobs data showed a slowing economy, many investors are rotating out of riskier tech stocks sitting NEAR record highs.

The inside of an AI data center.

Image source: Getty Images.

Citron Research takes aim at Palantir's valuation

Palantir was also the target of a short report from one of the most prominent short sellers on the market, Citron Research, which pointed out that after OpenAI's latest funding round, it is valued at roughly 17 times its sales. Palantir's stock carries a price-to-sales (P/S) multiple nearly seven times that of OpenAI -- the company at the very heart of the AI boom. Citron believes this is not rational.

I agree. Palantir may be firing on all cylinders, but its stock is disconnected from reality, and until it comes back down to earth, I WOULD not invest.

|Square

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