XRP Plummets Amid Trump’s Tariff Announcement, Overcoming Ripple’s RLUSD Launch
By FXStreet – April 2, 2025
In a notable market shift, the cryptocurrency XRP experienced a significant decline of 5% on Wednesday, largely overshadowing Ripple’s recent announcement regarding the launch of its RLUSD stablecoin on the Ripple Payments platform. This drop in value has resulted in over $710 million in realized losses for XRP investors, marking the highest level of losses in the cryptocurrency since late 2022. Ripple’s RLUSD Integration
Ripple’s introduction of the RLUSD stablecoin aimed to enhance cross-border payment efficiency. According to Ripple, select clients including notable payment service providers BKK Forex and iSend have started utilizing the RLUSD in their international treasury operations. Since its launch in December, RLUSD has garnered traction in the market with a current market capitalization nearing $250 million and an impressive trading volume of approximately $10 billion. Jack McDonald, Senior Vice President of Stablecoins at Ripple, noted that the stablecoin is experiencing faster growth than anticipated, serving multiple use cases, including collateral in both cryptocurrency and traditional financial markets.
Ripple has also announced that RLUSD is now live on the crypto exchange Kraken, further expanding its reach and functionality in the financial sector.
Market Reaction to Tariff Announcement
Despite the positive developments with RLUSD, the broader cryptocurrency market faced substantial declines due to President Donald Trump’s recent announcement of a 10% tariff on all imports into the U.S. This policy change, which includes reciprocal tariffs based on the trade rates of other countries, has negatively impacted investor sentiment, causing substantial losses across various cryptocurrencies.
XRP’s significant price drop was accompanied by waves of selling activities, including liquidations amounting to $17.26 million in futures trading. This comprised approximately $10.67 million from long positions and $6.59 million from short positions.
Technical Analysis and Future Outlook
As XRP’s price descended, investors are wary of a potential confirmation of a Head-and-Shoulders pattern that could lead to additional declines. A critical support level to monitor is situated at $1.96. If this support level, along with the 200-day Simple Moving Average, fails to hold, XRP may find itself heading towards a lower support area around $1.35. Currently, the Relative Strength Index (RSI) suggests that XRP is in a bearish territory, with momentum indicators such as the Stochastic Oscillator showing oversold conditions. For potential price reversal, a daily close above $2.34 would be required to challenge the downward trend, with aspirations to reach $2.78. Conclusion
The juxtaposition of Ripple’s advancements with RLUSD against the backdrop of increasing economic tensions due to tariff policies showcases the volatility of the cryptocurrency market. Investors remain vigilant as the implications from regulatory changes and macroeconomic factors continue to influence cryptocurrency prices, particularly for XRP. As the situation develops, traders are urged to stay informed and conduct comprehensive market analyses before making investment decisions.
Share this article:
