XRP News: XRP Plunges 6.36% as U.S. Tariff Fears and Profit-Taking Spark Market Panic
XRP investors were hit with a sharp decline today as the token fell 6.36% to $2.95, driven by U.S. tariff fears and aggressive profit-taking. Is this a temporary setback or the start of a deeper correction? Let’s break down the key factors.
XRP Price Drop: What Triggered the Sell-Off?
XRP’s decline intensified after it failed to hold above the $3 psychological level. The drop was fueled by:
- U.S. tariff policy: New duties on imports sparked fears of economic slowdown.
- Profit-taking: Over 93% of XRP holders are in profit, leading to sell pressure.
- Large transfers: Ripple co-founder Chris Larsen moved $140M worth of XRP to Binance, raising liquidation concerns.
U.S. Tariff Impact on XRP and Crypto Markets
The U.S. government’s new tariffs (15%-40% on goods from 70+ countries) created market-wide uncertainty. Copper tariffs jumped to 50%, potentially raising consumer prices by 3%. This cautious sentiment spilled into crypto, particularly affecting XRP due to its payment infrastructure role.
Profit-Taking Pressure: Is XRP Overbought?
On-chain data shows most XRP holders are in profit, a classic correction signal. Traders who bought between $2.30-$2.80 are cashing out, worsening the downtrend. Futures open interest also dropped 21%, indicating leveraged traders are exiting.
XRP Market Analysis: Can the Token Recover?
Analysts are divided:
- Bearish view: A break below $2.60 could trigger more liquidations.
- Bullish hope: A false breakdown below $3 might lead to a rally if XRP reclaims $3.30.
What’s Next for XRP?
Despite the drop, XRP is still up 57% YTD. The Fed’s rate freeze and macro uncertainty will dictate its next move. Watch $3.30 as a key resistance level for a potential rebound.
FAQs
Q: Why did XRP drop today?
A: The 6.36% decline was driven by U.S. tariff fears, profit-taking, and large XRP transfers to exchanges.
Q: Is XRP a good buy after this drop?
A: It depends on risk appetite. Some analysts see a rebound if $3.30 is reclaimed, but macro risks remain.
Q: How did U.S. tariffs affect XRP?
A: Tariff hikes raised economic slowdown fears, reducing risk appetite in crypto markets.
Q: What’s the support level for XRP?
A: $2.60 is critical; a break below could accelerate losses.
