XRP has been on a steep decline, dropping over 20% in a week and 30% over the past month to trade at $2.15 at press time, as broader market turbulence and regulatory uncertainty continue to weigh on sentiment.
While the cryptocurrency has mostly held above $2 over the past month, it has struggled to maintain key levels, fueling speculation about its next move.
With volatility dominating the market, traders are now watching closely to see where XRP could stand by the end of March 2025.
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To gain insight, Finbold consulted ChatGPT, which outlined several possible scenarios that could shape the asset’s price trajectory in the near term.
ChatGPT outlines key factors influencing XRP’s Price
ChatGPT highlights several key factors that could influence XRP’s trajectory in the coming months, including regulatory uncertainty, macroeconomic pressures, derivatives market trends, and on-chain activity.
The AI model identifies Ripple’s ongoing legal battle with the SEC as a key overhang, dampening investor sentiment even as regulatory scrutiny eases for firms like Coinbase, OpenSea, and Robinhood.
While other firms have seen SEC charges dropped, Ripple remains under legal pressure, keeping institutional investors cautious and limiting upside momentum.
Broader economic turbulence, including U.S. President Donald Trump’s tariff policies, has fueled risk-off sentiment in financial markets, further weighing on speculative assets like XRP.
XRP’s derivatives market data also signals a bearish trend, with open interest down 4.78% and options open interest plunging 93.74%, indicating a sharp pullback in speculative trading.
At the same time, long liquidations have surged, with $22 million wiped out in the past 24 hours, indicating that bulls are struggling to hold their positions.
The AI model notes the failure to sustain higher prices despite optimism surrounding a potential spot XRP ETF approval is an indicator of the current bearish sentiment in the market.
On-chain data further supports this cautious outlook, as large holders have sold over 370 million XRP in the past four days, reflecting a shift in sentiment that could keep the asset under pressure unless buying momentum returns.
Adding to the uncertainty, Ripple is set to unlock 1 billion XRP, increasing circulating supply and potentially amplifying selling pressure.
With supply-side factors creating additional headwinds, XRP’s ability to reclaim key price levels will be critical in determining whether it can stage a recovery or remain under pressure heading into March 2025.
XRP price projection for March 2025
ChatGPT outlines two potential scenarios for XRP’s trajectory heading into the first quarter of 2025.
If XRP reclaims $2.20 and holds above this level, the AI model anticipates a rebound toward $2.50 to $2.80, supported by improved market sentiment and potential regulatory clarity.
However, if selling pressure intensifies and XRP slips below $1.80, a deeper decline toward $1.50 could be on the horizon, particularly if macroeconomic uncertainty and whale sell-offs persist.
The model notes that XRP’s ability to maintain key support levels and Bitcoin’s (BTC) performance will be decisive factors in shaping its price movement in early 2025.
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