XRP’s price could face a severe downturn, with analysts warning of a potential 40% drop amid escalating market uncertainties. According to Cointelegraph, former U.S. President Donald Trump’s proposed 25% tariffs and shifting expectations regarding Federal Reserve interest rate cuts have rattled risk traders, intensifying bearish sentiment across the cryptocurrency market.
Trump’s Tariff Plans and Market Reaction
The cryptocurrency market, particularly risk-sensitive assets like XRP, has been under pressure following reports that Trump, if re-elected, intends to impose 25% tariffs on imports from China and other trading partners.
UPDATE: $XRP price could drop another 40% as President Trump’s 25% tariffs and falling rate cut odds spook risk traders. pic.twitter.com/YsKe4k1ilE
— Cointelegraph (@Cointelegraph) March 31, 2025
Historically, trade tariffs lead to market instability, increasing the cost of goods and services, while simultaneously reducing economic growth. For risk assets like stocks and cryptocurrencies, such policies create an atmosphere of uncertainty, prompting investors to move toward safer assets such as gold, bonds, and the U.S. dollar.
With XRP already experiencing volatility, traders now fear that a potential trade war scenario under Trump could dampen investor sentiment further, leading to an extended period of price declines.
The Federal Reserve’s Role in XRP’s Outlook
Another key factor weighing on XRP’s price trajectory is the diminishing likelihood of Federal Reserve interest rate cuts in 2024. Lower interest rates typically boost risk assets, as they make borrowing cheaper and increase liquidity in financial markets. However, if inflation remains stubbornly high, the Fed may delay or reduce the number of expected rate cuts, leading to lower demand for risk assets like XRP and other cryptocurrencies.
Recent macroeconomic data suggests that the Fed may hold off on rate cuts longer than expected, reinforcing bearish pressure on the crypto market. Combined with Trump’s potential trade policies, this could contribute to further downward movement for XRP.
XRP’s Technical Setup: More Losses Ahead?
From a technical perspective, XRP’s price action is showing signs of weakness. The coin has already struggled to maintain key support levels, and analysts warn that a further 40% drop could materialize if market conditions worsen.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Support Levels to Watch: XRP is currently testing critical support levels, and a break below these zones could accelerate selling pressure. If the coin fails to hold its recent lows, traders may expect a further move toward lower psychological levels.
Investor Sentiment Remains Bearish: The combination of macroeconomic uncertainty, Trump’s trade policy risks, and weaker liquidity conditions suggests that buyers are hesitant to step in at current prices. This could lead to further downside pressure in the coming weeks.
What’s Next for XRP?
While short-term sentiment remains bearish, long-term investors may see any deep correction as a buying opportunity. Historically, XRP has recovered from major downturns, often rebounding when market conditions stabilize.
However, in the immediate future, risk traders are closely watching both Trump’s policy developments and the Federal Reserve’s stance on interest rates. Any unexpected changes in these areas could further impact XRP’s trajectory. For now, investors should remain cautious, as volatility remains high, and downside risks persist.
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.
Follow us on X, Facebook, Telegram, and Google News
