The post Why is XRP Dropping Today? appeared first on Coinpedia Fintech News
The cryptocurrency market took a sharp hit on April 2, 2025, following President Donald Trump’s aggressive tariff announcement. Bitcoin led the decline, dropping to $82,000, while other major cryptocurrencies also faced losses. The sudden market shift wiped out gains from the previous days when prices had surged.
XRP Drops Below $2
XRP, one of the top altcoins, fell below the key $2 mark on Wednesday for the first time in almost a month during a massive market sell-off. The token dropped to $1.98 on Binance before bouncing back slightly, now trading at $2.05, down over 1% in the past day. Besides, in the last 24 hours, over $20 million worth of XRP tokens were liquidated, with about 63% of that coming from long positions, according to CoinGlass data.
The recent sell-off isn’t just hitting XRP, it’s shaking the entire crypto market. As reported by Coinpedia, the crypto market has experienced significant liquidations totaling approximately $500 millions after the trump tariff announcement impacting various cryptocurrencies, including Bitcoin, Ethereum, Solana, XRP, and Cardano.
XRP’s Momentum Fading
Despite XRP’s resilience, it’s struggling to break free from the broader bearish trend. Legendary trader John Bollinger had even predicted that XRP could become a market leader, but those hopes are fading. XRP has seen one of the sharpest drops in the share of its supply in profit, with around 5% now out of the green.
XRP had a strong rally in Q4 of 2024, but its momentum faded in Q1 of 2025 as the market downturn deepened and retail interest declined.
XRP is trading near the $2 support zone, a key level that could confirm a bearish trend if it breaks. This is part of a head-and-shoulders pattern, where the middle peak is the highest. If XRP drops below $1.90, it could signal a major downtrend, with prices possibly falling to $1.07, according to analyst Peter Brandt. To turn things around, bulls need to push the price above $3, which was the high point in early March.
Trump Tariff Fears Escalate
Investors fear that the tariffs could disrupt global economic stability, pushing them to move away from risky assets like crypto and seek refuge in safer investments like gold. Consequently, Gold’s price spiked to a new all-time high of over $3,150 just hours after the announcement, reflecting the shift in investor sentiment.
