XRP, the third largest cryptocurrency by market cap, plunged 26% to $2.12 over the last 24 hours. This occurred amid a broader crypto market decline due to U.S. trade tensions.
Causes of the Crash: Trade Wars and Technical Analysis
The XRP tumble is linked to President Donald Trump's announcement of new tariffs on China, Canada, and Mexico, effective on February 4, 2025. Cryptocurrencies, which trade 24/7, reacted swiftly. XRP's price saw an intraday low of $2.51, and its market cap dropped to $150 billion. Analyst Timothy Sykes attributed this to weekend trading volatility and fears over the U.S. stock market. Pseudonymous trader DonAlt warned of further selling pressure on Monday. The Coin Republic’s AI analytics platform had previously predicted this downturn, analyzing historical data and macroeconomic indicators.
XRP Price Forecast: Bullish Continuation or Trap?
According to analysts, the current XRP correction within the prevailing uptrend is technical. The $2.10–$2.50 range now serves as a liquidity zone. The $3.00 level is seen as overhead resistance, and a close above $3.20 would confirm bullish momentum. Without this support, the price may drop to the $1.63–$2.17 range.
Overall Impact on the Crypto Market
The XRP crash reflected broader sector stress. Ethereum dropped 8% to $2,944, and Solana fell 7.3% to $202.90. These events are overshadowed by trade tensions, outweighing positive developments like Ripple's ongoing SEC lawsuit resolution efforts.
The recent XRP drop highlights the crypto market's vulnerability to external economic factors and illustrates the necessity of thorough analysis of technical and fundamental data. The coming days may be crucial in determining the future trend for XRP.
