XRP XRP/USD plunged to $1.65 on Monday, its lowest price since November of last year, as investors fled crypto markets amid escalating global trade tensions sparked by U.S. President Donald Trump's newly imposed tariffs.
The so-called "Liberation Day" tariffs, issued April 2, introduced sweeping duties on imports from China, Canada, and Mexico—including a 20% tax on Chinese goods and 25% on steel and aluminum. The policy has rattled global financial markets and triggered a sharp risk-off response from investors, sending major cryptocurrencies, including XRP, into a steep correction.
XRP has lost nearly 25% of its value in the past month, dropping 12.3% on Monday alone after a 10.4% plunge Sunday. At the time of writing, the coin is trading at $1.79 with a market capitalization of $103.48 billion. According to Coinglass, $71.28 million in XRP bullish positions were liquidated in the last 24 hours, which points to the scale of investor capitulation.
Why Is XRP Falling?
The answer lies in both macroeconomic and technical factors. Cryptocurrencies are inherently risk assets, meaning they typically decline when investor sentiment turns defensive. Trump's aggressive trade policy has triggered fears of a global economic slowdown and rising inflation—conditions historically unfavorable for digital assets.
"Since trade war worries began on January 20th, crypto markets have erased -$800 BILLION," The Kobeissi Letter, an industry commentator, warned on X.
Broader market dynamics have only added pressure. Bitcoin fell below $78,000 while Ethereum tumbled below $1,500 before slightly rebounding. XRP, which maintains a strong correlation with Bitcoin, has followed suit.
Technically, XRP has breached the critical $2.00–$2.01 support level, which had held since December. The move completes a bearish head-and-shoulders formation, with additional downside risk if XRP closes below the $1.77 trendline. Should the support fail, technical indicators warn of a possible drop to $1.50—or even $1.00.
XRP Price Predictions for April 7, 2025
What's Next for XRP?
Despite the current turmoil, analysts remain cautiously optimistic about XRP's long-term outlook. Changelly forecasts an average price of $3.13 by the end of 2025, while Bitwise calls for the coin to reach $3.90 by the end of this year.
Investors should monitor the $1.70 support zone and brace for continued volatility as global macro pressures ripple across crypto markets.
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