Here's What to Do If XRP Drops to $1 in 2025

It's shaping up to be another volatile year for XRP (CRYPTO: XRP), with its price soaring to more than $3.20, only to crash to about $2.15, where it is now, with even lower prices potentially in store. Some investors are probably concerned that it could go to $1 in the next few months.

Let's examine that bearish scenario more closely so that you can develop a game plan just in case that happens.

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Back up the truck

Assuming that the world isn't ending and you have some spare capital on hand, XRP priced at $1 would be a tremendous opportunity to buy the dip, assuming you could stomach it. Here's why.

Like most stocks and many cryptocurrencies, XRP's price is not tightly linked to its intrinsic value. In other words, investors demand more of it, or try to dump it, based more on their sentiment in the moment rather than the coin's long-term potential to be worth more tomorrow than it is today. In XRP's case, there's a clear mechanism by which it can accrue value regardless of what its price is doing.

For the uninitiated, XRP incurs small fees every time there's a transaction on its network. Via those fees, each transaction destroys a small quantity of XRP, reducing the supply outstanding and thereby incrementally increasing the value of the coins held by all holders.

The transaction could be transferring XRP from one account to another, or it could be transferring stablecoins or swapping between stablecoins and the chain's native coin. Transferring real world assets, like U.S. Treasuries that are held on the chain, would also count as a fee-generating transaction.

Many of XRP's biggest holders are international banks, currency exchange groups, and other financial institutions. Those entities have a strong incentive to use XRP because the fees it charges are much lower than the widely used legacy system, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) -- and XRP's transactions are much faster, too.

So as long as customers are using the coin for its intended purpose, its value can slowly but surely continue to increase. And that's just one argument for why XRP priced at $1 would be a time to buy.

Don't let greed take over just yet

As juicy as cheap XRP would be, that doesn't mean that it's worth sacrificing your larger financial strategy just to gobble up more inexpensive coins.

The only way it makes sense to load up on $1 XRP is if your portfolio is already diversified with safer investments like stocks and bonds, as well as other major cryptocurrencies. Otherwise, you would be taking on a lot of risk -- perhaps more than what would be appropriate for your financial goals.

And if you didn't diligently build up capital beforehand, the idea of buying the dip would be more like a fantasy than something you could implement anyway.

Furthermore, the conditions of the market and the economy that created rock-bottom XRP prices would need to be studied carefully. Conditions like an intense trade war or severe recession would probably be sufficient to think about whether you could really tolerate holding the investment if it were underwater for a few years.

Nonetheless, conditions are bound to change eventually. If you have the fortitude, buying when nobody else is interested is the way to get the best deal.

So, just in case, it might be worth socking away some cash to have capital to use if you're interested in getting a deep bargain on XRP in the future. You may not get a chance to buy it at $1, but if you do, having a plan rather than only fear will ensure that you set yourself up for success as much as the moment of opportunity allows.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $282,016!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $41,869!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $482,720!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

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*Stock Advisor returns as of March 10, 2025

Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.