XRP Price Threatens Crash Below $2, is Smart Money Still Buying the Dip? Best Altcoins to Buy Instead

Ripple’s XRP, the 4th-largest cryptocurrency by market cap, finds itself in troubled waters, shedding nearly one-fifth of its value this week alone while sitting 33% below its January peak. 

As the entire digital asset market experiences a widespread correction, investors face a critical decision: Should they capitalize on XRP’s discounted prices or pivot to alternative cryptocurrencies with potentially better prospects? 

So far, XRP has managed to hold above the $2 threshold, but another week of sustained losses could threaten this crucial support level. Despite these recent setbacks, XRP has demonstrated remarkable resilience in the long term, remaining up over 6% year-to-date, while the rest of the crypto top 10 have slipped into the red.

Market Data Reveals Overwhelming Bearish Pressure

The sentiment surrounding XRP has turned decidedly sour, according to recent liquidation figures from Coinglass. In a telling development, Sunday witnessed the forced closure of $23.61 million worth of optimistic long positions, dwarfing the mere $3.94 million in shorts that met the same fate.

This severe imbalance extends to open interest metrics as well, with bearish bets outpacing bullish positions by a ratio of 3:1 – $375 million in shorts versus just $125 million in longs. 

These figures paint a clear picture of a market sentiment that favors a further downside in the immediate future. The disparity between long and short liquidations indicates that traders betting on XRP’s recovery are facing significant losses, while those expecting further decline are being rewarded for their pessimistic outlook. 

However, this short-term bearish trend contrasts with XRP’s decent long-term performance, which has outpaced other major cryptocurrencies in 2025.

White House Clarification Punctures XRP Rally Hopes

A brief moment of hope emerged for XRP holders when President Donald Trump mentioned the cryptocurrency alongside Bitcoin, Ethereum, Cardano, and Solana in discussions about a strategic national crypto reserve. 

This positive catalyst quickly evaporated, however, when crypto czar David Sacks issued an important clarification.

Sacks revealed that only Bitcoin would be purchased for the main reserve, while confiscated altcoins from illegal activities would comprise a separate stockpile without additional government investment. 

This announcement effectively pulled the rug from under XRP’s nascent recovery attempt, erasing any momentum gains and contributing to the ongoing price decline. The initial excitement that drove XRP higher following Trump’s original statement has now completely dissipated, leaving many investors questioning the cryptocurrency’s near-term prospects in light of this governmental stance.

Analysts Divided on XRP’s Future Trajectory

The technical picture for XRP presents a study in contrasts. On one hand, analyst Solberg Invest highlights XRP’s resilient defense of the $2 threshold amid market turmoil, suggesting this psychological support level could serve as a launchpad for a potential rally toward $4.4 if buying activity increases.

Countering this optimistic view, technical analyst Crypto Anbu points to a concerning head-and-shoulders pattern forming on XRP’s chart. This classic bearish formation suggests XRP could plummet toward $1.5 or lower should the $2 support give way. 

The conflicting analyses present a crossroads for XRP investors, with the $2 level representing the pivotal battleground that will likely determine the cryptocurrency’s short-term direction.

Best Altcoins to Buy Instead of XRP?

For traders seeking to capitalize on the market dip but concerned about XRP’s limited upside potential due to its massive market capitalization, several alternative cryptocurrencies might offer more attractive risk-reward profiles.

Solaxy stands out as a noteworthy option, developing the world’s first Solana Layer-2 blockchain designed to deliver faster, cheaper, and more reliable transactions than Solana’s main network. 

Currently in presale with $25 million raised, Solaxy offers substantial growth potential compared to XRP’s $126 billion market cap. The project also features a generous staking program with over 150% APY, with some analysts projecting potential 10x to 50x returns.

With huge investor backing and a novel use case, Solaxy could prove a shrewd investment ahead of the next bull rally.

Cardano represents another viable alternative that could outperform XRP in the coming months. This Layer-1 blockchain focused on scalability, security, and decentralized governance has garnered recent attention following reports that its founder, Charles Hoskinson, met with President Trump shortly before the crypto reserve announcement. 

With a current market capitalization of $26 billion – approximately one-fifth of XRP’s valuation – Cardano has room for significant growth, especially as its ecosystem expands through strategic partnerships like Midnight’s collaboration with OpenZeppelin.

Last but not least, Hedera has also emerged as a compelling option for investors seeking XRP alternatives. This scalable Layer-1 blockchain prioritizes fast, secure, and energy-efficient transactions with smart contract capabilities. Its recent partnership with global payments network SWIFT demonstrates 

Hedera’s ability to integrate with traditional financial infrastructure, potentially positioning it for substantial adoption. Trading at $0.2 with an $8.8 billion market cap, Hedera represents a fraction of XRP’s size, potentially offering more robust growth prospects if market sentiment improves.