MUST READ: IS XRP OVER?

Potential Reasons for the drop
1. Fed's Interest rate cut

On December 18, the Federal Reserve lowered interest rates by 0.25%. Although expected, this led to a sell-off in stocks and cryptocurrencies, including XRP, as investors worried about a potential economic slowdown.
2. (Biggest reason) Significantly less activity on XRP’s network:

XRP’s usage has decreased sharply. Payments on the network have dropped from 3 billion XRP to under 300 million, and active accounts have fallen below 50,000. This shows lower interest and use of XRP, which is hurting its value. Not to worry, something similar happened earlier this november but it is important to keep a lookout.
3. Investors taking profits
4. Weak crypto market: The entire crypto market has been unstable, with major coins like Bitcoin dropping below important price levels. This overall decline is also dragging XRP down.

"XRP's price surged toward $2.57 before reversing course after emerging from a descending triangle, a bullish indication. Even though this rally showed promise, the asset appears to be having difficulty gaining ground recently based on price action. Support is currently located around $2.13, and the 50 EMA serves as an important buffer." (Source: UToday)

For the bulls, hope for a breakout above 2.6

No, as mentioned earlier, XRP isn't the only crypto dropping. The entire market is dropping massively.
XRP is still used in cross-border payments and by financial institutions, especially through Ripple's partnerships.
This is a normal market cycle. Cryptos often go through periods of decline followed by recovery. XRP could rebound with the market.

For now, it's in a challenging phase, but it's too early to say it's over.

Happy investing