XRP News Today: Trump's Tariff Shockwave: XRP's 70% Plunge Exposes Crypto's Trade War Vulnerability

XRP, the native token of Ripple, experienced a dramatic price plunge in early October 2025, collapsing from $2.70 to as low as $0.77 within two minutes amid a broader crypto market sell-off triggered by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports Brave New Coin^[3]. The sudden drop erased billions in market capitalization and led to record liquidations, with XRP futures open interest contracting by $150 million during the sell-off Brave New Coin^[3]. The token eventually rebounded to $2.46 by the following day, recovering nearly 50% of its intraday losses Brave New Coin^[3].

The crash was part of a larger $19 billion liquidation cascade across the crypto market, driven by heightened risk-off sentiment as investors fled to safer assets. Bitcoin fell below $110,000, Ethereum sank below $3,700, and Solana and BNB also faced steep declines Coindesk^[1]. XRP's price action mirrored the broader market turmoil, with the token losing 17% in 24 hours to trade at $2.34 Cryptoticker.io^[5]. Technical analysis revealed a breakdown below key support levels at $2.75 and $2.50, exposing the token to further downside toward $2.20 or $1.80 Cryptoticker.io^[5].

Market analysts attributed the selloff to Trump's tariff announcement, which reignited geopolitical tensions and disrupted global trade dynamics. The move pushed the U.S. dollar higher and intensified macroeconomic uncertainty, amplifying downward pressure on risk assets. On-chain data indicated rapid outflows from major exchanges like Binance and Coinbase, with XRP transfers to exchanges signaling mass liquidations Cryptoticker.io^[5]. Additionally, XRP's recent overbought Stochastic RSI levels, historically preceding corrections, added to the bearish momentum Coinotag^[6].

The price volatility has sparked divergent views among analysts. While some argue that XRP's fundamentals-such as Ripple's institutional partnerships and regulatory progress-remain robust, others caution that the token faces significant hurdles. A descending triangle pattern on XRP's chart suggests a potential breakdown toward $1.14, a 50% decline from current levels TheCurrencyAnalytics.com^[10]. Conversely, bullish scenarios hinge on a sustained rebound above $2.75, which could rekindle momentum toward $3.00 Cryptoticker.io^[5]. Whale accumulation of 340 million XRP ($960 million) over the past two weeks has also been cited as a potential stabilizing factor Tradingnews.com^[9].

Looking ahead, XRP's trajectory will depend on macroeconomic developments, including the resolution of Trump's tariff policies and the outcome of U.S.-Iran nuclear negotiations, which could influence global trade and Ripple's cross-border payment solutions Analyticsinsight.net^[11]. Regulatory clarity, particularly regarding the SEC's ongoing lawsuit against Ripple, is also a critical factor. A favorable resolution could boost investor confidence, while prolonged uncertainty may hinder recovery Walletinvestor.com^[13].