XRP Crashes 5% Despite RLUSD Launch Amid Trump Tariff Concerns

Ripple's recent introduction of the RLUSD stablecoin on its payment platform was anticipated to be a pivotal moment for XRP. However, instead of rallying, the token experienced a 5% crash due to broader market concerns triggered by President Trump’s tariff announcement. This global market turmoil sent cryptocurrencies downward, and Ripple was not immune to the impact. The XRP crash erased much of the gains from Ripple’s RLUSD announcement, with noted realized losses of over $710 million, the highest level of realized loss in years. Many investors are feeling the pressure from the lower price as the token struggles to regain its footing.

Initially, there was a sense of optimism following Ripple's announcement that RLUSD was live on major exchanges and had been integrated into its cross-border payments solution. XRP prices rose by 2% in response. Unfortunately, this optimism was short-lived. A panic sell-off hit the market, leading to an XRP crash and causing over $17 million in futures liquidations. Long traders were the hardest hit, with nearly $11 million facing liquidations. Many investors who had taken profits from the rebound are now selling at a loss, shifting the market sentiment from optimism to uncertainty.

With a bearish trend now active for XRP, the technical outlook is decidedly bleak. The Relative Strength Index (RSI) is now below neutral, while the Stochastic Oscillator (Stoch) has been putting out oversold signals. The support level at $1.96 is crucial, especially with the 200-day Simple Moving Average (SMA) approaching. If this support level is broken, it could signal a downside Head-and-Shoulders completion, indicating much more downside potential. As XRP attempts to navigate this chaos, traders are keenly aware of the key levels that would prompt a recovery or further weakness.

The XRP 5-minute chart reflects significant volatility, with price action transitioning from a downward channel to a trading range before a sharp decline. Initially, XRP moved within a falling channel before breaking out into consolidation between $2.07 support and $2.20 resistance levels. A brief price spike attempted to break through the resistance but quickly faced rejection, leading to a strong sell-off. This resulted in a breakdown below the support zone, with the price dropping to near $2.00. The RSI indicated overbought conditions before the drop, signaling exhaustion, while the MACD aligned with bearish momentum through multiple death crosses.

After the breakdown, XRP attempted to find stability around the support zone at $2.00, with RSI flashing oversold conditions, hinting at a potential short-term rebound. However, repeated death crosses on the MACD suggest persistent bearish momentum, making any recovery uncertain. If bulls manage to push above $2.05, a retest of resistance could be seen, while failure to hold above support may extend losses further.

XRP’s price movement remains fragile as bears show momentum. Market uncertainty arose from Trump’s tariff announcement, placing selling pressure on the token following the launch of Ripple’s RLUSD. Several technical indicators, such as a weak RSI and repeating MACD death crosses, suggest that the bearish trend is not exhausted. The new $1.96 support level is significant as a break could lead to deeper declines, which could confirm a Head-and-Shoulders pattern with downside risk to $1.35. The high probability scenario would be if the support at $1.96 held, it could lead to a temporary rally toward $2.05. The XRP price prediction indicates that traders should monitor confirmation from signals like MACD and RSI to ascertain the subsequent course of action.