XRP Plummets 25% Amid Trump Tariffs, Global Trade War Fears

Ripple’s XRP has experienced a significant decline, dropping to $1.67, its lowest price since November 2024. This 25% monthly loss is attributed to the aggressive new tariffs imposed by U.S. President Donald Trump, which have sparked fears of a global trade war. These macroeconomic shifts have had a profound impact on financial markets, driving investors away from risk assets like XRP. The latest drop also triggered $47 million in liquidations, exacerbating the crypto market rout. Investors are now questioning why XRP is going down and what to expect from the XRP price prediction for 2025.

On April 2, Trump implemented sweeping tariffs, including 25% on steel and aluminum, 20% on Chinese goods, and new auto duties. The resulting panic led to a significant wipeout of $7.46 trillion from global equities in just two days. Bitcoin fell 7% to $77,077, and Ethereum dropped to $1,538, dragging XRP down to $1.67 by April 7. These trade tensions have triggered a global risk-off sentiment, with options markets now favoring downside bets on Bitcoin and altcoins alike.

Given XRP’s high correlation to Bitcoin (over 0.8), the drop was almost inevitable. The liquidation pain is substantial, with $968 million in bullish crypto bets wiped out in a day—$47 million from XRP alone. The selling pressure sent XRP’s market cap plunging by 17% to $102.5 billion. The volume spiked to $7.65 billion in 24 hours, signaling panic trades.

From a technical perspective, XRP is clinging to the lower boundary of its bearish regression channel, which has defined the downtrend since January. If this zone fails, the $1.50 level is next, followed by a psychological test of $1. The $2.00–$2.01 support level, crucial since December, broke down sharply last weekend, confirming the bearish momentum. Until XRP reclaims $2.00, traders should expect continued volatility.

Despite short-term weakness, long-term predictions remain mixed but hopeful. Changelly expects an average XRP price of $3.32 by the end of 2025. DigitalCoinPrice forecasts $3.51, while Bitwise targets $3.50–$4.00, depending on Ripple’s legal wins and institutional adoption. XRP might be feeling the pressure right now, but many analysts still believe it has strong potential looking ahead. Changelly expects XRP to average around $3.32, based on historical trends and growing adoption. DigitalCoinPrice is a bit more optimistic with a $3.51 average, factoring in possible regulatory clarity. Bitwise offers a $3.50–$4.00 range, playing it safe with a post-ETF approval scenario. CoinPriceForecast sees a more modest future, suggesting $2.05–$2.50 if growth remains slow.

So, why is XRP going down? The answer lies in Trump’s trade war, shaken markets, and broken support levels. For investors, it’s time to monitor global economic headlines closely and watch XRP’s key levels—$1.70 and $2.00. A rebound is possible, but if panic persists, the next stop could be $1. Risk-tolerant buyers might see this as a discount opportunity, while others may opt to wait for technical confirmation. One thing’s clear—2025 just got a lot more unpredictable for XRP.