From financemagnates by Damian Chmiel
The cryptocurrency market experienced turbulence as former President Donald Trump announced substantial tariffs on steel and aluminum imports, with XRP particularly affected by the market uncertainty.
Why Is XRP Down Today? Token Faces Pressure Following Trump's Trade War Escalation
XRP has declined 2.36% in the last 24 hours, currently trading at $2.40, as traders react to Trump's latest trade policy announcement. The digital asset movement reflects broader market concerns about escalating trade tensions.
The former president declared a 25% tariff on steel imports entering the United States, alongside additional levies on aluminum. Trump emphasized his commitment to reciprocal tariffs, stating that trade imbalances with other nations would not continue unchecked.
After the announcement, the cryptocurrency market's total capitalization showed signs of stress, though some assets have begun showing recovery signals. The announcement represents another chapter in ongoing trade tensions, with Trump also indicating plans to implement tariffs on various sectors, including superconductors, oil, gas, and copper.
Will XRP Go Up? XRP/USDT Technical Analysis Says So
Based on my technical analysis, XRP is currently utilizing a strong support zone that could potentially trigger a bounce toward theoretical maximums just below the $3.40 level.
February's decline halted at the $2.25 level, which is further reinforced by the 38.2% Fibonacci retracement. The price formed a significant hammer pattern (pin bar) at this level on February 3rd, with a notably long lower wick. While the buy signal hasn't materialized yet, and the price continues to hover around the support area, this level should ultimately allow movement toward the current consolidation's upper boundary.
This scenario would be invalidated if XRP drops below $2.25, opening the path for a retest of the $2 level, where the 50% Fibonacci retracement coincides with the descending trendline drawn from the declining peaks since December 2024.
A break below this level would signal to me that sellers are returning to the XRP/USDT chart, potentially pushing the price toward $1.60, which aligns with the 61.8% Fibonacci retracement.
| Support Levels | Resistance Levels |
| $2.25 - Local 2025 lows | $2.48 - Local resistance |
| $2.00 - Psychological level, 50% Fib retracement | $2.9185 - December highs |
| $1.60 - Mid-November highs, 61.8% Fib retracement | $3.50 - 2025 highs, target level |
Trading activity suggests heightened caution among investors, with market participants closely monitoring the potential ripple effects of these trade policies on digital asset valuations. While some cryptocurrencies have shown resilience, XRP's current price action indicates particular sensitivity to macroeconomic developments.
XRP Price Prediction 2025: Will XRP Reach $5?
Advanced predictive modeling using DeepSeek AI and market analysis suggest that the future of XRP has promising potential. A comprehensive evaluation reveals multiple factors that could drive significant price movement in 2025.
The anticipated trading range for XRP in 2025 points to substantial growth potential:
| Scenario | Price Target | Probability |
| Conservative | $3.50 | 65% |
| Base Case | $4.25 | 45% |
| Optimistic | $5.00 | 30% |
The financial sector's integration of XRP-based solutions could trigger substantial price appreciation. Banks and payment providers implementing cross-border payment systems represent a crucial adoption driver.
The price movement will likely be influenced by:
- Regulatory clarity developments
- Global cryptocurrency market conditions
- Institutional investment flows
- Cross-border payment volume growth
Ripple’s Token Price FAQ
What Is the Reason for XRP Drop?
The recent XRP price decline is primarily attributed to multiple factors converging simultaneously. President Trump's announcement of substantial tariffs on imports from China, Mexico, and Canada (10-25%) triggered widespread market uncertainty, causing a significant cryptocurrency sell-off.
Will XRP Increase Again?
Technical analysis suggests a potential recovery for XRP. The cryptocurrency has found strong support at $2.25, reinforced by the 38.2% Fibonacci retracement level. Several analysts and platforms project positive growth, with conservative estimates targeting $3.50 and optimistic scenarios suggesting $5.00 by late 2025.
What Could Cause XRP to Crash?
Several factors could trigger an XRP crash. These include potential regulatory challenges, increased competition from bank-created digital currencies, and broader market downturns. The ongoing volatility in response to Trump's trade policies demonstrates XRP's sensitivity to macroeconomic factors.
Is It Worth Investing in XRP Now?
While the token has shown resilience by maintaining support above $2.25 and demonstrates strong fundamentals through its growing adoption in cross-border payments, current market conditions suggest heightened volatility. The cryptocurrency's future value is closely tied to regulatory developments, institutional adoption, and the success of Ripple's payment solutions.
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