TLDR:
- XRP price has crashed 15%, trading at $1.80, its lowest in two months
- Over $40M in XRP liquidations have occurred, with $36M being long positions
- President Trump’s tariffs have sparked “Black Monday” fears across financial markets
- Technical indicators suggest a potential further drop to $1 (44% crash)
- Key support levels between $1.95-$2.05 are being tested, with analysts watching the $1.90 threshold
XRP Price Crashes Amid Broader Market Fears
XRP’s price has taken a steep dive, dropping 15% to trade at $1.80 on April 7, marking its lowest point in two months. This drop comes as part of a broader market selloff affecting both cryptocurrency and traditional financial markets.
The total cryptocurrency market cap has plunged by 9% to $2.4 trillion.
US stock markets are also showing signs of distress, with S&P 500 futures dropping by 2.88%.
The selloff appears to be directly connected to concerns about President Trump’s recently announced tariffs that have rekindled fears of a US-China trade war.
Many traders are reducing their exposure to risk assets as these trade tensions escalate.
Market Fears Intensify
Google Trends data shows search volumes for “Black Monday” have skyrocketed to their maximum level of 100.
This indicates widespread investor concern that today’s market action could mirror the historic stock market crash of 1987.
When asked about market concerns, President Trump stated on Sunday that he was “open to talking” but revealed no plans to ease his policies.
“What’s going to happen with the market? I can’t tell you, but I can tell you, our country has gotten a lot stronger, and eventually it’ll be a country like no other,” Trump said.
The combination of these factors has created a perfect storm for XRP and other cryptocurrencies.
Technical Outlook for XRP
XRP has broken below key support zones, including the 200-day Simple Moving Average (SMA).
This breach confirms a shift in trend from bullish to bearish.
The 50-day SMA is forming a bearish crossover with the 150-day SMA, which could signal further downside momentum.
The Relative Strength Index (RSI) has declined to 30, indicating intense selling pressure.
However, this oversold RSI reading might also suggest the downtrend is nearing exhaustion.
Data from Coinglass shows that more than $40 million in open XRP positions have been liquidated.
$36 million of these liquidated positions were longs, creating additional sell-side pressure that pulled XRP’s price downward.
Ripple’s open interest has fallen below $3 billion while funding rates have turned negative.
This indicates bearish market sentiment as short sellers expecting further price drops outnumber long buyers.
If current bearish trends continue, XRP price could plunge by 44% to $1, according to some analysts.
This outlook aligns with the sentiment shared by trader Peter Brandt, who noted that an XRP drop to $1 was likely if it lost support at critical levels.
In the short term, the $1.95-$2.05 range represents a crucial barrier.
If XRP closes below $1.95—and especially if it drops under $1.90—the selling could intensify.
This could potentially push XRP toward the $1.40-$1.50 range, representing another 20-30% drop from current levels.
Despite the current bearish outlook, crypto markets are known for their volatility.
If XRP can quickly regain its footing above key support zones, it might reverse the downward trend.
Some analysts, like Egrag Crypto, have previously stated that as long as XRP remains above $2, it would be on solid ground.
#XRP – Subscribers Group: pic.twitter.com/hKxj54zp5M
— EGRAG CRYPTO (@egragcrypto) April 7, 2025
However, with the price now dipping below that threshold, market uncertainty has increased significantly.
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