The cryptocurrency market is experiencing a broad sell-off, with XRP mirroring the bearish sentiment. Over the past 24 hours, XRP has dropped 16% to trade at $2.32, effectively erasing all the gains made on March 2.
This decline comes amid wider market volatility triggered by geopolitical and economic factors, notably U.S. President Donald Trump’s newly implemented tariffs.
XRP Leads Crypto Market Bloodbath
XRP’s sharp decline is in line with a broader market sell-off as investors react to Trump’s tariffs on imports from Canada, Mexico, and China.
The cryptocurrency market has collectively lost 8% of its value, bringing the total global market capitalization down to $2.76 trillion.
Key Market Declines:
1. Bitcoin (BTC) has fallen 10% over the last 24 hours, trading at $83,500, marking a 3% drop from pre-tariff levels.
2. Ethereum (ETH) has tumbled 12%, now hovering just above $2,000.
3. XRP, along with Solana (SOL) and Cardano (ADA), has suffered the steepest losses among the top 10 cryptocurrencies.
The risk-off sentiment among investors stems from fears of tighter economic conditions and the broader implications of Trump’s trade policies.
Over $50 Million in Long XRP Positions Liquidated
The sharp decline in XRP’s price has led to massive liquidations in the derivatives market. In the past 24 hours alone, nearly $58 million worth of XRP futures positions have been liquidated, with long liquidations accounting for $50 million.
This underscores the strong selling pressure currently dominating XRP’s price action.
Key Liquidation Data:
1. $49.7 million in long positions wiped out, compared to $8 million in short liquidations.
2. A similar liquidation event occurred between February 24 and February 26, erasing $80 million in long positions and causing a 17% price drop.
3. XRP’s open interest (OI) has fallen 25% from $4.45 billion on March 3 to $3.34 billion, signaling waning trader participation.
The funding rate has turned negative, dropping from 0.0103% to 0.00032%, reflecting weakened bullish sentiment.
Key Technical Levels: Can XRP Hold Above $2.20?
With XRP’s price facing intense bearish pressure, key support and resistance levels could dictate the next move.
Key Levels to Watch:
1. Support: $2.20 remains a crucial psychological support level. A breakdown could see XRP test $1.76 (February 3 low) and potentially $1.55, where the 200-day simple moving average (SMA) resides.
2. Resistance: A decisive move above $2.48, where the 100-day SMA and the upper boundary of the descending channel meet, is necessary to reignite bullish momentum. If achieved, XRP could revisit $3.00.
Trump’s Strategic Crypto Reserve Sparks Brief XRP Rally
Despite the bearish market sentiment, XRP witnessed a brief surge near $3 following President Trump’s announcement of a U.S. Crypto Strategic Reserve.
The plan includes XRP, alongside Bitcoin, Ethereum, Solana, and Cardano, as part of a national stockpile of digital assets. The announcement drove a 34% spike in XRP’s price, adding $44 billion to its market capitalization.
Can XRP Reach $5 Under Trump’s Presidency?
The inclusion of XRP in the U.S. Crypto Strategic Reserve has fueled speculation about whether it could finally surpass the elusive $5 mark. Analysts highlight three critical factors influencing XRP’s price trajectory:
1. Further Details on the Crypto Reserve: A clear regulatory framework could increase institutional adoption.
2. SEC vs. Ripple Case: If the SEC drops its appeal, XRP could surge past its 2021 all-time high of $3.40. However, continued legal uncertainty may drag XRP down to $1.50.
3. Potential Approval of an XRP Spot ETF: Institutional inflows from an ETF could act as a major bullish catalyst.
Market Reactions: Industry Leaders Weigh In
The strategic crypto reserve proposal has sparked debate among industry leaders. Coinbase CEO Brian Armstrong has suggested that Bitcoin alone should be included, arguing it serves as the best store of value.
Meanwhile, Bitwise CEO Hunter Horsley and Gemini co-founder Tyler Winklevoss expressed skepticism about the inclusion of multiple cryptocurrencies.
Conclusion: A Volatile Road Ahead for XRP
XRP’s price action remains highly volatile, with macroeconomic factors, liquidation events, and regulatory developments influencing its trajectory.
The next key event to watch is Trump’s Crypto Summit on Friday, where more details about the strategic reserve could emerge. Until clearer policies are established, XRP traders should brace for continued market fluctuations.
About Bitrue
Bitrue is a leading cryptocurrency exchange, offering a wide range of digital assets, innovative features, and user-focused services. Founded with the mission to empower the world’s crypto enthusiasts, Bitrue continues to expand its platform with new products, events, and opportunities for users worldwide.
This press release has also been published on VRITIMES
