Can XRP (Ripple) Bounce Back After Reaching a 19-Month Low?

XRP fell to $1.08 on Friday, its lowest price in 19 months, after a strong U.S. jobs report fueled fears the Federal Reserve would keep interest rates high. The cryptocurrency dropped alongside Bitcoin, which plunged below $60,000, wiping out over $1 billion in leveraged long positions within 24 hours. XRP’s decline was less severe than usual compared to Bitcoin, falling only 0.87 times its drop, though it remains down 48% from last year and 69% from its July 2025 peak of $3.65. The cryptocurrency’s market cap remains around $70 billion, making it the sixth-largest digital asset. However, its price has stabilized near $1.12 to $1.16, with a 7% rebound from Friday’s low. Institutional buying has supported XRP, as spot XRP ETFs recorded $131.94 million in inflows in May—the strongest month of the year—and an additional $4.13 million in early June, totaling $1.43 billion in cumulative inflows. The CLARITY Act, a bill that would permanently classify XRP as a commodity under U.S. law, could further boost its price if passed. The bill cleared the Senate Banking Committee in May and was placed on the Senate Legislative Calendar on June 1. Analysts at Standard Chartered estimate it could attract $4 to $8 billion in ETF inflows by year-end if approved. Additionally, XRP has historically outpaced Bitcoin and Ethereum in market recoveries, rallying 24-25% in January and 38% after the February crash, while Bitcoin and Ethereum saw smaller gains. Despite these positives, risks remain. Binance’s 30-day liquidity index for XRP has dropped to 0.043, its lowest level since 2023, signaling limited market depth. Over 25 million XRP were moved off exchanges recently, but long-term holders increased their positions by 22% between May 31 and June 2, suggesting strong confidence among key investors. Whether XRP can sustain a recovery depends on institutional demand, regulatory clarity, and broader crypto market trends.