It wasn't that long ago when XRP (CRYPTO: XRP) looked like it might be well on its way to reaching $4. Back in July of last year, the cryptocurrency hit a high of just over $3.65. Excitement around a new crypto-friendly government taking over led to a surge in the value of XRP and other cryptocurrencies.

But as with all things in the crypto world, things can change abruptly and without much warning. Since reaching those highs, the cryptocurrency has been in a fairly persistent decline. In just the past six months alone, it has lost more than half of its value. On Tuesday, it traded around $1.31 -- nearly one-third of its peak value.

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Is XRP, one of the leading cryptocurrencies in the world, which hopes to play a key role in reshaping global finance, an excellent investment while its value remains beaten-down and below the $1.50 mark?

Already, to start 2026, XRP has lost 28% in value in just the first three months. Investor sentiment is clearly souring in the crypto markets, as it's not only XRP that's struggling but other top cryptocurrencies as well. Bitcoin, the leader of the pack, is also down by about 24%.

There are multiple possible reasons to explain the wave of bearishness in the past several months.

First, there are concerns about the broad economy and whether it will fall into a recession due to tariffs and ranging geopolitical issues. Now, with oil prices on the rise, fears around inflation have heightened, and that may result in interest rates rising this year, which would be awful news for speculative assets such as cryptocurrencies.

Secondly, crypto investors may be worried about just how much reform may happen under the current administration. The Clarity Act, for instance, which seeks to establish a clear regulatory framework for cryptocurrencies, hasn't passed yet. The latest draft reportedly restricts stablecoin yields, which could diminish demand for stablecoins, and the issue could be a sticking point in the bill's approval. Meanwhile, midterm elections are coming up this year, and if reform isn't passed soon, it may be more difficult if the Republicans lose control of the House or Senate.

All in all, there's no guarantee that things will get better for XRP as the year goes on.

The temptation may be to buy XRP because it's come down so much in value and looks cheap. But remember, before the 2024 election, it was trading well below the $1 mark. If conditions in the economy and the broader crypto markets continue to deteriorate, I wouldn't be surprised if XRP returns to those levels.

There's unfortunately little reason to be optimistic that the cryptocurrency will rally anytime soon. It's been declining for several months, and without a catalyst to change its trajectory, investors may be better off staying away for the foreseeable future.

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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy.

Should You Buy XRP While It's Below $1.50? was originally published by The Motley Fool