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, 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.
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.
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.
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.
XRP is so far having decent gains of about 9% since January, boosted by the SEC dropping its long-running lawsuit against Ripple. This lowers the risk of regulatory issues that could affect XRP’s trading. Besides, there’s a set of potential regulatory catalysts coming up that could drive the coin’s price higher if they occur and which makes XRP a good investment. The SEC is considering whether to approve a total of nine exchange-traded funds (ETFs) holding XRP. If approved, this could drive the price higher if approved, as asset managers would need to buy large amounts of XRP to back the funds.
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