XRP has dropped 2.36% in the last 24 hours, trading at $2.43 as market participants digest former US President Donald Trump’s sweeping tariff announcements.
The digital asset’s decline aligns with broader market volatility following Trump’s renewed protectionist stance, which includes a 25% tariff on steel imports and additional levies on aluminum.
The move has triggered a risk-off sentiment, with investors pulling capital from speculative assets, including cryptocurrencies.
The market’s total capitalization has fluctuated as traders assess the long-term implications of escalating trade tensions, particularly in sectors such as technology, energy, and raw materials.
XRP chart by TradingView
The latest announcement has drawn comparisons to the US-China trade war during Trump’s previous term, which had a significant impact on global trade flows and investment sentiment.
This time, digital assets have not been spared, with XRP showing heightened sensitivity to macroeconomic developments.
XRP price struggles as traders brace for volatility
XRP’s price decline has placed it near critical technical levels, with traders closely monitoring support at $2.25.
The 38.2% Fibonacci retracement level aligns with this zone, offering the potential for a short-term rebound.
Price action suggests caution, as failure to hold this level could open the door for further declines toward $2.00.
The recent downward pressure follows a broad sell-off in risk assets, with cryptocurrencies particularly affected due to their correlation with macroeconomic sentiment.
XRP’s price chart reflects hesitation among traders, with a long lower wick on February 3 indicating an attempt to defend support.
However, the lack of a strong buying signal suggests that investors remain wary of potential downside risks.
Should selling pressure persist, XRP could retest $1.60, which coincides with the 61.8% Fibonacci retracement level.
A breakdown below this point could indicate a deeper bearish trend, particularly if broader market sentiment remains weak.
Will XRP recover after Trump’s tariff shock?
Despite short-term headwinds, XRP’s long-term outlook remains tied to adoption trends and institutional interest.
The integration of Ripple’s technology into global payment networks continues to be a crucial driver of demand, with financial institutions exploring the asset’s role in cross-border transactions.
Regulatory clarity is another major factor influencing XRP’s price trajectory.
The cryptocurrency market has faced increased scrutiny, with the outcome of regulatory developments playing a key role in shaping institutional participation.
Positive regulatory advancements could provide a tailwind for XRP, supporting a recovery toward previous highs.
Technical models suggest a potential trading range between $3.50 and $5.00 by 2025, provided that adoption accelerates and broader market conditions improve.
Ongoing geopolitical risks, trade policy shifts, and global economic uncertainty could create volatility, making XRP’s price movements unpredictable in the near term.
Trump’s trade policies add uncertainty to crypto
Trump’s latest tariff plans extend beyond steel and aluminum, with potential duties on superconductors, energy products, and critical raw materials.
The impact of these policies could be far-reaching, affecting not only traditional industries but also digital asset markets.
The cryptocurrency sector remains highly reactive to macroeconomic events, with regulatory and policy changes often influencing market sentiment.
Traders are now watching whether Trump’s economic policies could lead to broader capital shifts, particularly if risk aversion increases.
For XRP and other cryptocurrencies, the next major price movement will likely depend on how markets absorb the impact of these tariff decisions in the coming weeks.
While some traders anticipate a relief rally, others warn that prolonged uncertainty could keep digital assets under pressure.
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