Crypto Market Panic: Why is XRP Dropping Today?

The cryptocurrency market took a sharp hit on April 2, 2025, after President Donald Trump announced aggressive new tariffs, sending shockwaves through the financial world. Bitcoin, the market leader, plunged to $82,000, dragging other major cryptocurrencies down with it.

The sudden sell-off wiped out gains from the previous days, leaving traders scrambling. Let’s break it down.

XRP Drops Below $2

XRP, one of the top altcoins, dropped below the key $2 mark for the first time in nearly a month. The token briefly fell to $1.98 on Binance before recovering slightly to $2.05, down over 1% in the past 24 hours.

The sell-off triggered over $20 million in XRP liquidations, with around 63% coming from long positions, according to CoinGlass data. This suggests many traders betting on higher prices were caught off guard by the market drop.

The sell-off wasn’t limited to XRP – the entire crypto market faced heavy losses. According to Coinpedia, total liquidations have exceeded $500 million since Trump’s tariff announcement, affecting top assets like Bitcoin, Ethereum, Solana, and Cardano.

XRP Struggles to Regain Strength

Despite showing resilience in the past, XRP is struggling to break free from the broader bearish trend. Legendary trader John Bollinger had predicted that XRP could become a market leader, but that outlook now appears uncertain.

XRP’s share of supply in profit has seen one of the sharpest declines, with around 5% of its holdings now at a loss. After a strong rally in late 2024, its momentum has weakened in early 2025 as market sentiment shifts and retail interest fades.

Key Support Level Holds the Next Move

XRP is hovering around the $2 support zone, a crucial level that could determine its next direction. Analysts warn that if the price drops below $1.90, it could trigger a deeper decline, possibly falling to $1.07.

Veteran trader Peter Brandt has identified a head-and-shoulders pattern on XRP’s chart—a formation that often signals a bearish reversal. To regain strength, XRP needs to break above $3, its high from early March.

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Trump’s Tariff Policy Pushes Investors Toward Gold

Uncertainty over Trump’s tariffs is making investors cautious. Many are pulling out of risky assets like cryptocurrencies and moving toward safer investments. This shift is evident in gold’s price surge—it hit a record high of over $3,150 just hours after the announcement.

As the market absorbs the impact of the tariff decision, all eyes are on whether crypto can recover in the coming weeks or if further losses lie ahead.