The cryptocurrency XRP experienced a significant drop, falling below $2 amid increased market volatility and new US tariffs.
XRP Drop Amid Market Volatility
On Wednesday, XRP dropped below the critical $2 mark, testing the $1.96 level as the crypto market faced heightened volatility. The sudden downturn in the market erased gains from the past three days, with over $450 million in crypto futures liquidated in the last 24 hours.
Impact of New US Tariffs
The market shakeup follows President Donald Trump's decision to impose a 25% tariff on auto imports and at least a 10% tariff on all exporters to the U.S., adding pressure to already fragile investor sentiment.
Technical Analysis of XRP
According to an analyst, XRP continues to show signs of a bearish divergence, a pattern that has been developing for months, suggesting the potential for lower prices. However, zooming into the 8-hour timeframe, there's evidence of a short-term bullish divergence—a slight upward movement in price with choppy sideways action. Currently, XRP is facing strong resistance between $2.24 and $2.30, with a recent rejection at around $2.24. This level has been a consistent barrier, preventing XRP from gaining momentum.
Despite short-term bullish indicators, XRP may struggle to break through resistance without stronger market catalysts.
