The cryptocurrency market is reeling under intense selling pressure, with XRP among the hardest-hit assets. Recently, XRP has plummeted over 33%, tumbling from a high of $2.92 to a low of $1.95, marking its weakest level since December 20, 2024. Just two days prior, XRP was trading as high as $3.13, making the recent downturn particularly steep.
However, this decline is not unique to XRP. Bitcoin has dropped below $91,000, a sharp fall from its $100,000 peak earlier in the week. Meanwhile, popular altcoins like Dogecoin and Shiba Inu have suffered even greater losses, with declines nearing 40%.
As panic spreads across the market, many analysts suggest U.S. President Donald Trump is responsible for this sudden downturn.
Trump’s Tariffs and the Crypto Market’s Fallout
On February 1, 2025, President Trump implemented a series of aggressive trade tariffs, targeting Mexico, Canada, and China. The new policy enforces a 25% tariff on goods from Mexico and Canada and a 10% tariff on imports from China. The administration has positioned these tariffs as measures to combat illegal immigration and drug trafficking, but they have triggered significant geopolitical and economic repercussions.
In response, Mexico, Canada, and China have announced their retaliatory tariffs and initiated legal proceedings against the U.S. These escalating trade tensions have rattled financial markets, sparking fears of a prolonged global trade war.
Crypto investors, known for their sensitivity to macroeconomic conditions, reacted swiftly to the news. Bitcoin crashed to a three-week low, narrowly holding above the $90K mark, while XRP sank to a seven-week low, dipping below $2 after nearly setting a new all-time high earlier in the week.
Market analysts suggest heightened economic uncertainty has driven investors away from riskier assets like cryptocurrencies, prompting the steep sell-off seen across the market.
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Can XRP Stage a Comeback?
Despite the turbulence, many traders and analysts see this dip as a prime buying opportunity before the next potential uptrend. Within hours of reaching its low of $1.95, XRP has already managed to reclaim the $2 level, signaling early signs of a rebound.
As of report time, XRP is trading at $2.68, reflecting recovery from its lowest point. However, it is still below the height it reached just a day ago.
Nevertheless, market commentators remain optimistic about XRP’s potential for a strong comeback. Some believe that once the broader market sentiment stabilizes, XRP could enter its next bullish phase, with price targets in the $4 range.
While uncertainty remains, many investors eye this pullback as a strategic accumulation phase, waiting for XRP’s next leg upward.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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