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Fear has returned to the XRP market as prices continue to fluctuate, and according to Black Swan Capitalist founder Versan Aljarrah, the latest wave of panic is no surprise.
He argues that fear always strikes those who don’t fully grasp the realities of holding XRP. To him, this is especially true when volatility intensifies, and market conditions appear engineered to shake out weak investors.
Fear Returns as XRP Trades in a Heavy Downtrend
Notably, XRP has been struggling to regain momentum after slipping below the crucial $2 support level. The asset recently touched lows around $1.84 before rebounding, extending a correction that began after XRP reached its yearly peak of $3.67 in July.
The decline initially accelerated in early October, when a tariff fallout between the U.S. and China triggered a broad market crash. Billions were liquidated across exchanges, and XRP recorded wildly different lows on different platforms.
Kraken data showed a drop to $1.40, while Binance charts on TradingView captured an even deeper flash low at $0.77. Analysts believe these violent moves created liquidity gaps, including one around $1.98 to $1.99, which XRP has now revisited.
Some traders frame the current price zone as a rare “early Black Friday sale,” warning that the discount may not last if a rebound begins soon.
The Psychological Challenge: Why Many Can’t Hold XRP
Aljarrah says holding XRP can be tough because its price often tests investors’ patience. It tends to underperform for long stretches before suddenly rallying.
For example, in 2017, XRP stayed flat for months before soaring by more than 70,000%, then later dropping by 95%. In 2024, it traded slowly for most of the year before jumping more than 600% near year-end.
These slow periods make many investors sell too early, just before big gains. Aljarrah notes that understanding XRP’s fundamentals, like Ripple’s work on global payments and liquidity, makes holding it a strategic choice rather than an emotional one.
“Engineered Volatility” and Market Shakeouts
In reference to the latest market drop, Aljarrah warns that engineered volatility is to push out investors who lack conviction. Many sell when fear spikes, especially during sudden crashes like those in October.
Analysts note that the real challenge is not just surviving downturns, it’s resisting the urge to take profits when XRP hits big numbers.
Where XRP Could Go From Here
XRP is currently trading at $2.07, up 1.5% in the last 24 hours. Analysts are projecting a rebound to $4 by 2026. Some longer-term targets include $13 and $27. On the downside, support levels are $1.91, $1.73, and $1.55 if fear persists.