XRP Bloodbath: Here’s Why XRP is Sinking Today

XRP plunged deeper into negative territory on Wednesday, sliding 5.42 percent to close at $2.0230. The asset has lost over 14 percent within seven days, ranking among the weakest top-tier cryptos.

The market suffered drastic deterioration during President Donald Trump’s announcement of trade tariffs that targeted every foreign trading alliance. The market experienced mass panic following the announcement, which compelled investors to prioritize safety over risk.

Market anxieties about a new trade conflict caused Dow Jones futures to plunge 1,017 points in investor assessment. The market recorded its highest-ever value for gold when the yellow metal reached $3,168 as investors chose protective assets above others.

Cryptocurrency valuation decreased by 3.49 percent in immediate reaction, reducing the cryptocurrency market capitalization to $2.61 trillion. The market value of XRP capitulated because traders exited altcoins linked to regulatory issues and geopolitical factors.

Also Read: Ripple Just Made a Bold Move with RLUSD – Here’s What Happened

Moreover, the recent introduction of the RLUSD stablecoin into Ripple Payments did not strengthen market sentiment. Recent trading numbers indicate that XRP futures positions lost over $18 million within the last day.

The total market value from liquidated positions reached $11 million through long positions and $7 million from short positions.

Technical analysts now point to the $2 level as a crucial support zone to watch closely. If breached, the next significant support lies around $1.50, accompanied by the 200-day simple moving average.

Regulatory Headwinds Intensify As SEC Decision Looms

XRP’s struggles are also linked to mounting regulatory pressure surrounding the ongoing SEC versus Ripple case. A closed SEC meeting scheduled for today, April 3, might discuss whether to officially announce the withdrawal of its appeal on XRP’s programmatic sales.

Ripple had announced that it would withdraw its cross-appeal in the lawsuit, potentially putting the case to rest for good. After this meeting, a favorable decision would significantly modify XRP’s legal framework and potentially impact its price.

A disclosed agreement between Ripple and the regulatory body shows the opportunity to lower Ripple’s forthcoming $150 million penalty to $50 million. The settlement might enable Ripple to resume institutional sales within US markets without limitations.

The positive outcome will enhance Ripple’s ability to grow its business in US markets by influencing regulators who must decide on pending XRP-spot ETF applications.

Meanwhile, according to on-chain data analysis, the XRP network shows conflicting signals among holders and traders, but this metric has moved beneath its 200-day moving average, displaying generally negative indicators.

Large wallet investors are raising their XRP holdings while showing increased dedication toward extended durations. Current market valuation trails behind the realized value, so more prolonged consolidation or a new corrective phase could occur.

Conclusion

XRP remains under pressure as external economic shocks and legal uncertainties weigh on price stability. All eyes remain on the $2 support level and the SEC’s next move, both critical for XRP’s short-term direction.

Also Read: Bitcoin, Ethereum and Solana Slide as Trump’s Tariff Announcement Sparks Global Market Selloff

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