XRP Drops 7% as Market Reacts to Trump Tariffs and Inflation Woes
XRP took a 7% hit on Friday as macro concerns weighed on the market. Tariff threats from former US President Donald Trump and inflation fears spooked investors across risk assets.
Despite previous rallies, XRP has struggled to hold momentum, down 35% from its January high of $3.40. That’s compared to its 500% surge in late 2024.
Recent regulatory developments, including the US SEC dropping its appeal against Ripple, didn’t spark a price bounce. Many had already priced in the SEC’s softer stance so XRP has been in a consolidation phase.
On-Chain Metrics Show Weakness as Supply Rises
XRP on-chain activity is weak, adding to the bearishness. Whales have reduced their transaction volumes to pre-US election levels. Binance and Upbit, two major XRP exchanges, have had stagnant exchange reserves since March. No accumulation.
Key supply side concerns are Ripple’s escrow unlocks. They release 1 billion XRP per month, 33% of which enters circulation. Over the past year XRP’s circulating supply has gone from 54 billion to 58 billion tokens. If demand doesn’t match supply that could put more pressure on the price.
XRP Market Indicators at a Glance:
Whale Transactions: Declining, indicating reduced big-player activity.
Exchange Reserves: Flat, showing lackluster accumulation.
Open Interest: Recovering to 1.75 billion XRP from a monthly low of 1.35 billion XRP.
Circulating Supply: Increased by 4 billion XRP in the past year.
XRP Risks Further Decline if Support Fails
Technical indicators show downside risk if XRP fails to hold support. It just broke below $2.34 and is down 7% for the day. A Head-and-Shoulders (H&S) pattern is forming with support at $1.96.
If that breaks it could go to $1.35.Coinglass futures data shows XRP had $24.89 million in liquidations in the last 24 hours, $23.63 million of which were longs. So bulls are getting squeezed.
Potential Scenarios for XRP:
Bearish Case: A breach below $1.96 could lead to a decline toward $1.35.
Bullish Case: If XRP holds above $1.96, it may rebound toward $2.60 and retest resistance at $2.78.
With the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) both trending below neutral levels, bearish momentum appears dominant. Investors should monitor these key price zones closely, as a daily close above $2.60 could invalidate the bearish outlook and restore positive sentiment in the market.
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