XRP Price Crashes After Trump Announces New Reciprocal Tariffs

The XRP price fell sharply on Wednesday after President Donald Trump announced a sweeping set of reciprocal tariffs targeting over a dozen trade partners. 

The move sent shockwaves through financial markets, pushing traders toward risk-off positioning. While traditional equities were hit first, crypto assets quickly followed suit, with XRP registering a 5% decline within hours of the announcement.

This policy shift, set to take effect from 5 April 2025, has raised fears of renewed trade conflict and global economic slowdown. 

For XRP, which was already struggling to regain upward momentum, the news has created fresh technical pressure just as it approached key price levels.

Trump’s Tariff Decision Triggers a Global Risk-Off Move

In line with his long-standing trade policy stance, President Trump confirmed that the United States will implement new reciprocal tariffs ranging from 10% to 50%. 

The countries impacted include major trading partners in Europe and Asia, creating concerns of a global economic retaliation cycle.

Markets responded immediately. Stock indices across the United States and Europe opened lower, with Germany’s DAX dropping 1.3%, while US futures on the Nasdaq 100 and S&P 500 fell sharply. 

Investors sought refuge in traditional safe-haven assets like gold, which surged to new record highs.

For the crypto sector, the impact was indirect but noticeable. XRP was among the first major altcoins to reflect investor caution. 

The 5% intraday decline came amid broader weakness across the crypto space. The volatility was not extreme compared to past events, but it signals the increasing correlation between crypto and macroeconomic news.

Kirill Kretov, an automation expert at CoinPanel, described the market reaction as “a collective shock,” noting that traders are waiting for more clarity before making large moves. 

“The speed of this policy announcement caught many off guard,” he said. “Until the market fully digests the implications, volatility will stay elevated.”

Read more: Ripple Unlocks 1 Billion XRP

XRP Price Analysis: Support Under Threat and Bearish Pressure Builds

As of April 4, XRP is trading near the $2.00 level after falling from highs above $2.15 earlier in the week. 

The 1-hour XRPUSD chart reveals a clean breakdown from its recent support zone at $2.10, turning that level into potential short-term resistance. 

The price briefly bounced at $2.00, a key psychological and technical area, but failed to recover strongly, indicating caution among buyers.

If selling pressure continues, the next major support lies just below $2.00. A daily close under that zone could open the door for a deeper correction toward $1.85. However, if bulls manage to defend the $2.00 region, a short-term rebound toward the $2.30 resistance area is possible.

This zone remains the primary ceiling in the near term. A break above $2.30 could reignite bullish momentum and bring the $2.60 target into play. 

This is a key Fibonacci extension area and aligns with previous consolidation from late March, making it an ideal technical target in a bullish scenario.

Looking further ahead, the long-term target for XRP remains $5, contingent on broader market recovery and positive developments in regulation or institutional adoption. 

However, in the current macroeconomic environment, traders are unlikely to position aggressively toward that goal unless short-term volatility subsides.

For now, the structure remains fragile, and the market will likely respond more to global headlines than technical patterns alone. Until the tariff narrative settles or is absorbed, XRP could remain trapped in a narrow range between $2.00 and $2.30.

Read more: XRP Price Prediction April 2025

Global Macro Trends Fuel Investor Uncertainty

The broader backdrop driving the current sell-off extends beyond XRP or even crypto. Investors are contending with multiple layers of uncertainty. 

The sudden imposition of tariffs brings back memories of earlier trade wars and their disruptive impact on global supply chains. Combined with sticky inflation and slowing GDP growth, this environment favours conservative positioning over speculative risk.

In the equity space, sectors like automotive, retail, and industrials have been hit hardest. These areas are highly exposed to international trade, and new import duties are expected to raise operational costs significantly. 

Analysts have begun to lower growth forecasts for Q2, and expectations of a possible interest rate pivot by the Federal Reserve are now under review.

For crypto markets, the environment is complex. On one hand, decentralised assets like XRP benefit from long-term trends of digitalisation and borderless value transfer. 

On the other, short-term trading behaviour is highly sensitive to capital flows, liquidity conditions, and regulatory sentiment.

With investors seeking safety and clarity, even fundamentally strong tokens are not immune to volatility. XRP, in particular, often reacts sharply to shifts in sentiment due to its large supply and active derivatives market. That makes it an ideal barometer for broader risk appetite within the altcoin segment.

As the dust settles, attention will shift back to key data releases and regulatory updates. But until then, traders should expect a reactive environment, where headlines and geopolitical decisions drive price action more than fundamentals.

Conclusion

The announcement of reciprocal tariffs by President Trump has rattled global markets and sent XRP tumbling by 5%. The move comes at a sensitive time for crypto, with traders already showing signs of caution amid uncertain economic conditions.

For XRP, the technical outlook remains mixed. While the $2.00 support is holding for now, the path to recovery requires a sustained move above $2.30. If achieved, $2.60 becomes a viable short-term target, with the longer-term case for $5 still intact—but only if macro conditions stabilise.

Investors should watch both price action and global headlines closely. In the short term, defensive positioning and risk control may be prudent, especially given the potential for further volatility. 

For those considering an entry, platforms like Bitrue offer a secure and reliable environment to trade XRP with real-time market tools, limit orders, and multi-asset support.

Frequently Asked Questions

Why did XRP drop after Trump’s tariff announcement?
XRP fell 5% after President Trump announced new global tariffs, which increased market uncertainty and triggered a broader sell-off across crypto and traditional markets.

What are the key support and resistance levels for XRP now?
Current support is at $2.00. Resistance lies near $2.30, with a short-term target at $2.60 if the price recovers. The long-term target remains $5, depending on broader market recovery.

Is this a good time to buy XRP?
Caution is advised. With increased volatility and macro uncertainty, waiting for price stabilisation or confirmation above $2.30 may offer a more favourable entry.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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