Trump’s Tariffs weigh on Ripple’s XRP
XRP’s market dynamics are negatively impacted by geopolitical uncertainty. The already uncertain XRP market may see more negative trends amid high economic uncertainty in the global economy. The most recent action comes after tensions between the U.S. and Canada.
President Trump’s announcement of additional tariffs on Canadian aluminum and steel has raised worries about market volatility.
Investor sentiment remained low amid high cryptocurrency liquidations. Although these tariffs might increase pressure, some analysts contend that other macroeconomic factors were already causing the market to decline. The Crypto Greed & Fear Index stands at 19, showing extreme fear.
The uncertainty is alarming even though the tariffs may not be implemented or may be reversed. Long-term holders (LTHs) have become a crucial stabilizing factor for XRP. Many LTHs have opted to hold onto their positions rather than sell at lower prices amid market correction.
This economic volatility has mostly been detrimental to XRP. Announcements about tariffs have historically caused price declines, with the remittance token and other cryptocurrency assets suffering. Although it’s uncertain if the new Canadian tariffs will significantly alter the market’s downward trajectory, they may increase these losses.
LTHs maintain large profits as shown on the MVRV (Market Value to Realized Value) Long/Short Difference, which reduces their motivation to sell during market downturns. Their choice to hang onto their investments has been essential to XRP’s price stability.
Market action
The Ripple-based token sits above the crucial $2 support level. Even though the altcoin has dropped 10% over the past seven days, it struggled to stay above the $2 mark. This suggests that the asset’s long-term holders play a part in providing a safety net. The ability of XRP to consolidate above the $2.2 mark is contingent upon LTHs sticking to their position.
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