The cryptocurrency market is experiencing a downturn, with XRP being one of the hardest hit. In the past week, XRP has dropped 18% due to weakening market sentiment. This decline is attributed to increasing global financial instability, which has been fueled by newly imposed tariffs.
The introduction of new tariffs has unsettled both traditional and crypto markets, leading to a decline in investor confidence. As a result, XRP is struggling to regain its momentum. To do so, it needs to break through key resistance levels of $2.67 and $2.81.
Currently, XRP is trading at $2.42, with a 24-hour trading volume of $9.90 billion and a market cap of $139.42 billion. The cryptocurrency has seen a 3.61% drop in the last 24 hours, reflecting continued bearish sentiment.
For XRP to regain its bullish momentum, it must close above the 21 EMA at $2.67. A break above $2.81 is also seen as crucial for a sustained upward move. However, if selling pressure intensifies, XRP could drop below $1.77, indicating further downside risk.
The current price action suggests that XRP may continue trading within a range, with key support levels at $2.45 and $2.27. If XRP holds above these levels, it could stabilize the price, but further breakdowns may lead to increased volatility.
The cryptocurrency market is closely watching how global markets react to the new tariffs, as heightened volatility could impact not just XRP but the entire cryptocurrency space. A bullish breakout would require strong buying volume and a clear break above key resistance levels, while failure to hold support could trigger further downside.
Investors are monitoring the situation closely, as ongoing macroeconomic concerns, including trade tensions and regulatory uncertainty, continue to weigh on the market. The long-term bullish structure of XRP may still hold, but the token faces significant downward pressure in the short term.
