XRP’s Final Dip Before Soaring to $3.84: Here’s What You Need to Know

XRP teeters on the edge of one last correction before launching toward historic highs—traders are positioning for the ultimate buy-the-dip opportunity.

The Setup: Temporary Pain Before Massive Gain

Market patterns suggest XRP might test lower support levels, creating a prime entry window. This isn't panic selling—it's strategic accumulation by smart money anticipating the next leg up.

Technical indicators flash bullish divergences even as price action shows short-term weakness. That classic 'washout' moment—where weak hands surrender coins to diamond hands—is brewing.

The Target: $3.84 Isn't Just a Number

This isn't random speculation. The $3.84 target represents a key Fibonacci extension level from previous cycles. Hitting it would mean a 600%+ surge from current levels—enough to make even traditional finance bros glance up from their spreadsheets.

Regulatory clarity and institutional adoption continue building beneath the surface. While Wall Street still debates whether crypto is 'real,' the infrastructure for massive capital inflows gets built anyway.

Timing the Bounce: When Dip Becomes Launchpad

Watch for volume drying up on downward moves—that's the signal the correction is exhausting itself. Then comes the violent reversal that leaves sidelined investors chasing price.

This might be the last chance to board the XRP rocket before it leaves the atmosphere. Because nothing hurts more than watching a 600% rally from the sidelines—except maybe listening to your fund manager explain why he missed it.

Image source: Getty Images.

1. Speculative investors may cash out

XRP's value has skyrocketed more than 770% in just a few years, a surge that naturally tempts some investors to lock in their gains and sell. When prices climb this dramatically, it's common for investors to take profits, particularly if they believe the cryptocurrency has limited upside in the NEAR term or if it has already achieved significant gains over a short period of time.

History suggests XRP can decline sharply after a run-up. After reaching its all-time high of $3.84 in January 2018, XRP plunged 86% by December of that year. While the token has real-world applications -- such as serving as a bridge currency for cross-border transactions -- this dramatic drop highlights its inherent volatility. Many investors have likely purchased XRP simply because it has been on a strong upward trajectory over the past several years. Without compelling new catalysts to sustain momentum, these speculative holders may decide to sell, creating pressure that could push XRP lower in the near term.

2. Positive news may already be priced in

Even significant developments don't always move XRP's price as one might expect. Take the recent resolution of the SEC's litigation against Ripple Labs, for example. In 2020, the SEC accused Ripple Labs of improperly selling XRP in unregistered securities offerings. 

While the dropping of the case was a major milestone for the cryptocurrency, XRP fell roughly 10% in the weeks following the announcement. This muted reaction suggests that the market had largely anticipated the news, and much of the potential upside was already reflected in the price.

This is fairly common among speculative investments. Even when the fundamentals or regulatory environment improve, the effect on price can be limited if investors have already factored the news into their expectations. For XRP, this means that future positive developments -- such as broader adoption by financial institutions or the approval of XRP crypto ETFs -- may not automatically translate into immediate price gains. Instead, momentum may depend on additional, unexpected catalysts to reignite investor enthusiasm.

3. The biggest near-term threat for XRP

If there's one thing that could push XRP lower in the near term, it's a slowing U.S. economy. The stock market and cryptocurrency investments have been frothy over the past several years, fueled in part by Optimism about a strong economy. But recent data suggests that the tide may be shifting. In August 2025, only 22,000 jobs were added, far below expectations, and July saw a loss of 13,000 jobs. On top of that, the revised figures for the first three months of the year showed 911,000 fewer jobs added than previously reported.

When investors start worrying about the job market and broader economic conditions, they tend to pull back from riskier investments, like cryptocurrencies, and history shows how quickly economic concerns can impact XRP's price. During the inflation surge of 2022, XRP stayed well below $1 for much of the year. Similarly, when President Donald TRUMP announced new tariffs in April 2025, XRP dropped roughly 15% in just one week on investor fears about the economy.

While XRP eventually bounced back, these examples illustrate just how volatile the token can be -- and how quickly negative economic news can send its price tumbling. For anyone thinking about buying XRP right now, it might be wise to watch the economy closely and be prepared for potential short-term dips before considering an entry.