The XRP/BTC trading pair has plummeted to its lowest level in three months, showing a growing investor preference for Bitcoin over XRP. As Bitcoin surges to new all-time highs, XRP’s relative weakness raises concerns about its near-term prospects.
As of May 22, 2025, the XRP/BTC trading pair stands at 0.000021 BTC, marking a 29% decline since its downward trend began on March 2. Analysts attribute this slump to Bitcoin’s latest rally, which saw BTC reach a record high of $111,888 earlier in the day.
“When the XRP/BTC pair falls this sharply, it signals a clear shift in market sentiment,” said crypto analyst Mark Johnson. “Investors are rotating out of altcoins like XRP and into Bitcoin, especially with BTC’s strong institutional inflows.”
The widening gap between Bitcoin and XRP performance shows a broader trend of capital consolidation into BTC during bullish cycles. Data from TradingView shows that the XRP/BTC trading pair has struggled to regain momentum despite XRP’s recent 4% price increase against the dollar.
Weak network demand raises sustainability concerns
While XRP’s USD price has seen minor gains, on-chain metrics suggest weak underlying demand. Santiment data reveals a negative Price-DAA (Daily Active Addresses) divergence of -58.2%, indicating that XRP’s price surge lacks strong network activity support.
“A negative Price-DAA divergence is a classic warning sign,” noted blockchain researcher Lisa Chen. “It means the price is moving up, but user engagement isn’t following. That usually leads to a correction unless demand picks up.”
The XRP/BTC trading pair’s decline aligns with this trend, reinforcing concerns that XRP’s recent gains may be short-lived. Unlike Bitcoin, which has seen surging adoption from ETFs and institutional investors, XRP’s utility-driven ecosystem hasn’t attracted comparable demand.
Key price levels to watch for XRP
At press time, XRP is trading at 2.43 against the USD. If selling pressure continues, analysts warn that the next critical support lies at 2.29. A breach below this level could trigger further declines toward $2.11.
On the upside, a resurgence in buying interest could push XRP above $2.50, but this would require a significant shift in market sentiment. “For the XRP/BTC trading pair to recover, we’d need to see either Bitcoin cool off or XRP’s on-chain activity spike,” said trader Ryan Wright.
Ripple’s legal woes add to investor caution
Another factor weighing on the XRP/BTC trading pair is Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Despite partial victories in 2023, the case remains unresolved, creating regulatory uncertainty.
“Until Ripple gets full clarity from the SEC, some institutional players will stay on the sidelines,” explained legal analyst Sarah Goodwin. “That limits XRP’s upside compared to Bitcoin, which has clearer regulatory acceptance.”
Bitcoin’s dominance leaves altcoins behind
Bitcoin’s dominance rate—its share of the total crypto market cap—has climbed to 54%, its highest level since April 2021. This suggests that capital is flowing out of altcoins like XRP and into BTC.
“When Bitcoin runs this hard, altcoins often suffer,” said hedge fund manager David Kwan. “The XRP/BTC trading pair is just one example of how altcoins struggle to keep up in a BTC-dominated market.”
Can XRP rebound?
For XRP to regain lost ground against Bitcoin, analysts say it needs either:
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Stronger adoption: Increased usage of Ripple’s payment solutions or XRP Ledger applications.
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Legal clarity: A definitive resolution to Ripple’s SEC case.
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Bitcoin consolidation: A pause in BTC’s rally that allows altcoins to catch up.
Until then, the XRP/BTC trading pair may continue to face downward pressure. As the market evolves, traders will watch whether XRP can carve out a stronger niche or if Bitcoin’s dominance will keep it subdued.
