XRP, one of the most prominent cryptocurrencies, is facing a significant downturn as it hovers around a critical threshold below $2. Currently trading at $1.9171, XRP has been on a steady decline, losing over 10% in just one day, marking its largest one-day percentage loss since early April 2025. This decline has brought its market capitalization down to approximately $113.15 billion, representing 4.53% of the total cryptocurrency market cap.
The recent volatility in the cryptocurrency market is largely attributed to the fallout from U.S. President Donald Trump’s announcement of sweeping tariffs on nearly every country, which has triggered a massive sell-off across both traditional stock and crypto markets. The U.S. stock market alone lost an astonishing $1.65 trillion at the opening bell following Trump’s speech, which coincided with XRP's drop from a recent high of $2.23 to as low as $1.99.
Market analyst Oscar Ramos noted that the timing of XRP's decline directly correlates with geopolitical pressures stemming from the tariff announcements. "Are you tired of winning? It’s too good, man," he quipped, urging investors to remain calm amid the chaos. Despite the turmoil, Ramos pointed to support levels that suggest XRP might be nearing a major bottom, having previously shown resilience around similar price points during earlier tariff developments involving Canada, Mexico, and China.
As XRP continues to test the $2 level, it has done so successfully seven times since December 2024, indicating a consistent buyer support. However, the looming pressure from the 200-day moving average, currently positioned at $1.84, is acting like a gravitational force, pulling XRP closer to potential new lows. If XRP fails to maintain its position above $1.80, analysts predict it could extend its losses further, potentially retesting its yearly low around $1.77.
The broader cryptocurrency market is also feeling the heat, with futures tied to major cryptocurrencies experiencing over $840 million in liquidations in the past 24 hours. Bitcoin traders alone lost over $322 million, while Ethereum traders faced nearly $290 million in losses. Smaller tokens like XRP and Solana saw a cumulative liquidation of around $80 million. This suggests that the market sentiment has turned bearish, with nearly 86% of all futures bets being bullish prior to the downturn.
In addition to XRP's struggles, Pi Coin has plunged to an unprecedented low of $0.51, marking an 83% drop since its peak in late February. The cascading liquidations across various cryptocurrencies indicate a significant shift in market sentiment, where panic selling could be leading to a potential market turning point.
Despite the bearish outlook, there are signs of hope for XRP enthusiasts. Ramos emphasized that just remaining near the $2 mark, rather than plunging deeper, is a minor victory in the current climate. He highlighted the recent launch of Ripple USD (RLUSD) on Kraken as a positive development amid the chaos, suggesting that there are still opportunities for accumulation.
Looking ahead, analysts are predicting choppy waters for the crypto market, with uncertainty testing investor patience. Ramos has adopted a cautious trading strategy, focusing on accumulating Bitcoin while holding off on new XRP positions until clearer signals emerge. He also pointed out the importance of monitoring the Relative Strength Index (RSI), which indicates that XRP has not yet entered an oversold region on the daily timeframe. The last time the RSI indicated oversold conditions was back in July 2024.
As the market continues to react to macroeconomic shocks, XRP's trajectory appears to be entering an important phase, with the potential for further declines if it fails to stabilize. The formation of a bearish technical pattern known as the “Three Black Crows” on the daily chart suggests that continued downward pressure may be imminent.
In summary, XRP's current plight reflects the broader turbulence in the cryptocurrency market, driven largely by external geopolitical factors. As traders and investors navigate this challenging landscape, the focus remains on support levels and potential recovery points for XRP and other cryptocurrencies.
