XRP News Today: XRP's 42% Crash: Tariffs, Liquidations Spark Accumulation Amid Regulatory Uncertainty

XRP rebounded sharply following a 42% flash crash triggered by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, with the token recovering to $2.36 from a low of $1.64. The abrupt sell-off, driven by large-scale liquidations and a $150 million drop in institutional futures open interest, saw trading volumes surge 164% above the 30-day average, signaling forced deleveraging across corporate desks. On-chain data revealed long-term holders accumulating XRP below $2.40, indicating value-based repositioning despite macroeconomic pressures such as global trade tensions and regulatory uncertainty around Ripple's National Trust charterXRP Crashes 40%, Before Recovering, in Biggest One-Day Drop^[2].

The price action highlighted intraday volatility peaking at 43%, with XRP breaching key supports at $2.70 and $2.50 before stabilizing near $2.35–$2.40. Accumulation volumes exceeded 12 million in the final 15 minutes of trading, suggesting short-term stabilization. Technical analysis positioned $2.30–$2.35 as critical support, with extended downside risk to $2.22 if volume dries up. Resistance levels were layered at $2.84–$2.90, with a close above $2.90 required to invalidate the bearish biasXRP Crashes 40%, Before Recovering, in Biggest One-Day Drop^[2].

The crash coincided with broader crypto market turmoil, as $19.1 billion in leveraged positions were liquidated in 24 hours-the largest single-day wipeout in crypto history. XRP's 30% drop from $2.82 to $1.89 marked one of its steepest declines, exacerbated by delayed U.S. ETF approvals and regulatory scrutiny. Analysts noted that the sell-off disproportionately impacted altcoins, with XRP's market cap shrinking by over $400 billion alongside the broader crypto market's drop to $3.74 trillion.

Institutional activity underscored the volatility, with 320 million XRP transferred to exchange wallets in the prior week, signaling whale distribution pressureXRP Crashes 40%, Before Recovering, in Biggest One-Day Drop^[2]. Despite the turmoil, late-session buying stabilized prices near $2.35–$2.40, and on-chain metrics suggested a potential base formation as RSI levels approached multi-month lowsXRP Crashes 40%, Before Recovering, in Biggest One-Day Drop^[2].

Market participants are closely monitoring whether $2.30 support attracts sustained accumulation and the rebuild of open interest in derivatives markets. Regulatory clarity post-Ripple's charter review and cross-asset spillovers from Bitcoin's $125,000 rally could influence XRP's trajectoryXRP Crashes 40%, Before Recovering, in Biggest One-Day Drop^[2].