After nearly seven years of disappointing performance, Ripple made a stunning comeback in the second half of 2024, skyrocketing over 500% to hit a multi-year high of $3.40.

But now, with its price slipping back below $2.50, the question on everyone’s mind is: Is XRP still a smart buy while it trades under $3?

To best answer the question of whether it is worth investing in Ripple while it trades below $3, one must look at three key things. For starters, one ought to look at the factors keeping its price trading below $3 when they will be resolved – if ever.

Secondly, one ought to consider the viability of factors expected to trigger its next breakout above $3. But even more importantly, one ought to ask how high XRP prices will ever reach. 

Factors Keeping Ripple Below $3

Looking at Ripple’s relation to the macros, you will notice that while the fear of inflation, tariffs, and trade wars yanked XRP from above the $3 mark, the ensuing uncertainty has ensured it remains around the $2 territory for more than a month.

The market currently leans bearish, and the unfettered growth of new Ripple addresses experienced in early January has come to a halt. The watch and wait mode adopted has had a larger impact on XRP’s price action as it is considered a riskier asset.

What Will Inform Ripple’s Next Price Action

Analysts and investors are equally convinced that Ripple will eventually rebound, scale back above $3, and chart the path to a new all-time high – which confirms that Ripple is worth buying right now. These professionals have also shared views on when they expect Ripple to start rebounding.

First, there is a high degree of confidence that Ripple will start rallying again when the SEC eventually approves the Ripple ETF – possibly before year-end. Secondly, when the Trump administration comes up with a clear tariff policy, effectively easing the inflation and trade war fears.

Other drivers include the establishment of a US strategic crypto reserve that features XRP. First, though, the Ripple vs SEC case needs to come to a favourable conclusion.

How High Can XRP Prices Reach?

Optimistic investors are confident that Ripple will likely rally around 300% to break above $6 before the year’s end. By the turn of the decade, they argue that it has a chance of breaking above $50 – which gives it the current Nvidia market cap of around $3 Trillion. Should you invest in XRP under $3 and hold to this price level, you would have grown your investment by approximately 2000%.