TLDR:
- XRP has fallen 15% to $1.80, reaching its lowest price point in two months
- Trump’s new tariff policies have created fears of a “Black Monday” market event
- More than $40 million in XRP positions have been liquidated during the selloff
- Technical analysis suggests XRP could potentially drop further to $1
- The $1.95-$2.05 range represents a critical support zone for the cryptocurrency
The cryptocurrency market is experiencing heavy turbulence today as XRP price dropped sharply by 15% to trade at $1.80. This marks a two-month low for the digital asset as investor fears mount.
The price action comes as part of a broader market correction.
Bitcoin has slipped below $78,000 while Ethereum trades under $1,600 after a similar 15% drop.
The total cryptocurrency market capitalization has contracted by 9%, falling to $2.4 trillion as traders reduce risk exposure.
This downturn isn’t isolated to crypto markets alone.
Traditional financial markets are also feeling the pressure, with S&P 500 futures dropping 2.88%.
Trade Tensions Fuel Market Anxiety
The primary catalyst for today’s market turmoil appears to be President Trump’s recently announced tariff policies.
These measures have reignited concerns about an escalating US-China trade war.
Google search data reveals that queries for “Black Monday” have hit their maximum measurement of 100.
This indicates widespread fear that today’s market action could mirror the historic 1987 stock market crash.
When questioned about market concerns on Sunday, President Trump stated he was “open to talking.”
However, he offered no indication of policy adjustments, saying: “What’s going to happen with the market? I can’t tell you, but I can tell you, our country has gotten a lot stronger, and eventually it’ll be a country like no other.”
These statements have done little to quell investor anxiety.
XRP’s Technical Picture Darkens
XRP’s price chart shows a breach of multiple key support levels, including the 200-day Simple Moving Average.
This technical breakdown confirms a shift from bullish to bearish market structure.
The cryptocurrency is also witnessing a bearish crossover as the 50-day SMA moves below the 150-day SMA.
The Relative Strength Index (RSI) has declined to 30, indicating heavy selling pressure.
While this oversold condition might suggest a potential bounce, the overall technical picture remains negative.
Data from Coinglass reveals that over $40 million in XRP positions have been liquidated during this selloff.
A striking $36 million of these liquidations were long positions, creating additional downward pressure.
Ripple’s open interest has now fallen below $3 billion.
Funding rates have turned negative, showing that short sellers currently dominate the market sentiment.
If current bearish momentum continues, some analysts believe XRP could potentially drop by 44% to the $1 mark.
This projection aligns with trader Peter Brandt’s outlook, who had previously warned of a potential decline to $1 if key support levels failed.
The $1.95-$2.05 price range now represents a critical barrier for XRP.
Should the price close below $1.95—and especially if it drops under $1.90—further selling could accelerate.
This could potentially push XRP toward the $1.40-$1.50 range, representing another 20-30% decline from current levels.
The bearish divergence on XRP’s 3-day chart has been building for months, according to analyst Josh of Crypto World.
This technical pattern is now playing out as many analysts had warned.
Recent bullish signals have been invalidated after the RSI breakdown, suggesting that positive momentum has faded quickly.
Despite the current bearish outlook, the cryptocurrency market is known for its volatility and rapid reversals.
If XRP can reclaim the key support zone above $2, it might still reverse the downward trend.
Analyst Egrag Crypto had previously noted that as long as XRP remained above $2, it would be on solid ground.
With the price now below this threshold, market uncertainty has increased substantially.
Traders and investors now face difficult decisions as they navigate this turbulent market environment.
