The cryptocurrency market has always been defined by its relentless volatility, characterized by a rhythmic cycle of parabolic bull runs followed by grueling bear markets. For long-term investors, these swings are the price of admission for potential triple-digit gains. However, when a prominent asset like $XRP experiences a prolonged drawdown while the rest of the market evolves, whispers of a “death spiral” inevitably begin to surface.
Currently, the $XRP price finds itself at a critical crossroads. After reaching an all-time high ($ATH) of approximately $3.84 in early 2018, the token has struggled to reclaim those glory days. While it saw a massive resurgence in 2025 following major legal victories, the price has recently cooled significantly, drifting from those local highs to the current level of around $1.43. This 60%+ decline from the $ATH has led some skeptics to ask the ultimate “black swan” question: Will $XRP price crash to $0?
What is Ripple and What is $XRP?
To understand the price action, one must first distinguish between the company and the asset. Ripple is a private technology company based in San Francisco that specializes in providing financial institutions with a global payment network. Its primary goal is to replace the aging SWIFT system with a faster, cheaper alternative.
$XRP, on the other hand, is the native digital asset of the $XRP Ledger (XRPL). While Ripple uses $XRP in its liquidity products—specifically On-Demand Liquidity (ODL)—the ledger is decentralized and open-source. $XRP acts as a “bridge currency,” allowing banks to move money across borders in seconds without the need for pre-funded Nostro/Vostro accounts.
The SEC Lawsuit: A Battle for the Ages
For nearly five years, the primary weight around $XRP‘s neck was the U.S. Securities and Exchange Commission (SEC). The lawsuit, which began in December 2020, alleged that Ripple’s sale of $XRP constituted an unregistered securities offering.
The legal saga reached a historic turning point in 2025. Following years of appeals and courtroom drama, a final settlement was reached under a shifting regulatory climate in Washington. The court reaffirmed that $XRP itself is not a security when sold on public exchanges to retail investors. Ripple ultimately paid a significantly reduced penalty of $50 million—a fraction of the SEC’s original $2 billion demand—and the permanent injunction on its operations was largely dissolved. This provided the “regulatory clarity” that the market had craved for years.
$XRP News Today: $XRP in February 2026
As of February 22, 2026, the narrative around $XRP has shifted from legal survival to institutional adoption. Despite the recent price correction to $1.43, the ecosystem is expanding:
- ETF Inflows: Following the approval of spot $XRP ETFs in late 2025, institutional products have seen over $1.2 billion in cumulative inflows.
- $RLUSD Stablecoin: Ripple’s USD-pegged stablecoin, $RLUSD, has surpassed a $1.3 billion market cap, driving more utility to the $XRP Ledger.
- The CLARITY Act: Ripple CEO Brad Garlinghouse recently expressed 90% confidence that the Digital Asset Market Clarity Act will pass by April 2026, which would provide a permanent statutory framework for tokens like $XRP.
Will $XRP Crash to $0? The Hard Truth
The idea of $XRP crashing to $0 is a sensationalist “zero-sum” theory that ignores the fundamental utility of the network. For an asset to hit zero, it must lose all liquidity, all utility, and all demand simultaneously.
- Network Utility: Unlike “meme coins” that rely on social media hype, $XRP is integrated into the backend infrastructure of hundreds of financial institutions globally. Even if the price drops, the ledger continues to process transactions.
- Institutional Backing: With the launch of ETFs and the entry of major asset managers, $XRP is now a “regulated” asset class in the eyes of many institutional desks.
- Market Cycles: A drop to $1.43 is a standard correction in the world of crypto. In previous cycles, assets like $Bitcoin and $Ethereum have crashed 80-90% before reaching new highs.
While a “crash to zero” is highly improbable given the current ecosystem, $XRP still faces risks. Macroeconomic downturns, a potential failure in the passage of the CLARITY Act, or a lack of retail interest could keep the price suppressed. However, the “truth” is that $XRP has more structural support today than it did when it was trading at $3.00.
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