Will XRP Survive If the Market Crashes Like 1929?

The US stock market is flashing red lights. Valuations across multiple metrics have surged to levels not seen since the Great Depression, the 1965 crash, and the Dot-com bubble of 1999. Despite these warnings, the S&P 500 just marked a fresh all-time high, leaving investors uneasy about how long the rally can last. For cryptocurrencies like XRP, which often move in tandem with risk assets, the stakes are high. If Wall Street cracks, XRP price could face heavy selling pressure. If optimism holds, it may find a base to recover. The chart right now tells us XRP is sitting on a knife’s edge.

XRP Price Prediction:Is a Stock Market Crash About to Impact XRP Price?

Global markets are showing worrying signals. US equity valuations are now higher than during some of history’s biggest downturns, including 1929, 1965, and 1999. Bloomberg’s data puts stocks in their most extreme percentile range ever, right before events that triggered the Great Depression, a prolonged bear market, and the Dot-com collapse. With Wall Street brushing off recession fears earlier this year, investors now face a serious question: if equities tumble, what happens to cryptocurrencies like XRP?

Stock Market Valuations and Why They Matter for XRP Price?

The current equity metrics—P/E ratios, price-to-book, market cap-to-GDP, Tobin’s Q—are all stretched to historic highs. If a correction or crash comes, liquidity will shrink across risk assets. Historically, crypto has not been immune to sharp equity downturns, as seen during the COVID-19 crash in March 2020. A liquidity crunch forces investors to sell both stocks and digital assets, creating correlation even in markets designed to be alternative.

For XRP, the risk is clear. If the S&P 500 finally breaks down, capital outflows from speculative assets could drag XRP lower before it finds new buyers at value levels.

XRP Price Prediction: Bearish Pressure Mounting

XRP/USD Daily Chart- TradingView

Looking at the chart, XRP recently fell out of its strong July rally and has been trending lower through August into early September. Price is now around $2.78, below the middle Bollinger Band ($2.96), indicating bearish momentum. The candles are compressing near the lower band ($2.73), which often signals either a continuation to the downside or the setup for a reversal bounce.

Key support levels are marked near $2.60 and $2.40, while resistance is stacked at $3.00 and $3.20. Breaking under $2.60 could accelerate selling toward $2.20, especially if broader markets correct.

Macro Sentiment Meets Technical Weakness

XRP’s chart is already weak, showing a series of lower highs since early August. Now, combine that with looming macro risks from overheated equity valuations. If panic grips Wall Street, XRP could quickly revisit its lower Fibonacci zones. On the other hand, if markets avoid a crash and risk appetite stays intact, XRP may consolidate around $2.70–$2.80 and attempt another push above $3.

What Could Happen Next?

If US equities crack in September, expect $XRP to drop toward $2.40 and possibly test $2.20 as traders rush to safe havens like USD and gold. But if the S&P 500 keeps grinding higher, $XRP could hold current support and aim for recovery, retesting $3.00 resistance. The next two weeks are crucial—watch for how equities behave after their all-time highs. Crypto investors will take their cue from there.