XRP News Today: XRP Dives 6.36% Amid U.S. Tariff Fears and Profit-Taking Pressure

XRP experienced a sharp decline on August 1, 2025, falling 6.36% to $2.95, driven by a combination of U.S. trade policy uncertainty, heightened market volatility, and aggressive profit-taking. The drop intensified as the token fell below the $3 psychological level, marking its weakest point in the past 24 hours [1]. The decline began after XRP reached $3.15 in early trading but failed to hold above $3.00 as selling pressure mounted [1].

The broader market environment was a major contributor to XRP’s poor performance. The U.S. government’s new tariff policy—raising duties between 15% and 40% on goods from over 70 countries—spurred fears of economic slowdown and inflationary pressure. For example, copper, a key industrial material, now faces a 50% tariff, significantly higher than the 25% in India, potentially increasing consumer prices by up to 3% [1]. These developments created a wave of caution among investors, particularly in the digital asset space, where XRP is especially exposed due to its role in payment infrastructure and blockchain services [1].

The Federal Reserve's decision to maintain interest rates also failed to provide reassurance. Despite showing some improvement in economic data, the central bank warned of slowing growth, leading to a general flight to safety in traditional markets and a pullback in risk assets, including altcoins [1]. The XRP trading volume surged to $7.62 billion, a 18.33% increase, but this was attributed to liquidations rather than new buying inflows. The token’s market capitalization fell 6.25% to $175.09 billion during the same period [1].

Notably, large-scale movements of XRP by key players amplified the sell-off. Ripple co-founder Chris Larsen transferred approximately $140 million worth of XRP to Binance, raising concerns of a potential large-scale liquidation. This move occurred shortly after XRP hit a recent high of $3.66, triggering further panic in the market [1]. On-chain data also revealed that over 93% of XRP's circulating supply is currently in profit, historically a sign of an impending correction. Traders who entered positions between $2.30 and $2.80 have been locking in gains, further contributing to the downward spiral [1].

In the futures market, open interest in XRP futures dropped by $2.4 billion in a single week—a 21% decline from its peak. This indicates that leveraged traders are reducing their positions, though the market remains sensitive to further shocks. A break below the $2.60 support level could trigger more liquidations and accelerate the decline [1].

While the fundamentals of XRP remain underdeveloped, analysts have pointed to potential signs of a reversal. Van Code has suggested that a false breakdown below $3 could be followed by a new rally if XRP manages to break above $3.30. A bullish flag pattern observed between late 2024 and early 2025 has also encouraged technical traders, with some predicting a move to $4 by fall. However, such forecasts depend on XRP’s ability to maintain a close above $3.30 [2].

The broader macroeconomic climate remains a key uncertainty. The Fed’s recent rate freeze sent ripples through crypto markets, causing Bitcoin and other altcoins to weaken. Analysts believe that the next major price move in XRP will likely depend on the direction of central bank policy in the coming months [2].

Despite the recent drop, XRP is still up 57% year to date. The next few weeks will be critical in determining whether buyer confidence returns or whether a deeper correction is in store [2].

Sources:

[1] AInvest. (2025, July 31). XRP News Today: XRP Faces Sell-Off as Key Support Levels Pressured. https://www.ainvest.com/news/xrp-news-today-xrp-faces-sell-key-support-levels-whale-activity-trigger-13-weekly-drop-2507/

[2] AInvest, AOL.com, The, TradingView, CoinGape, The. (2025, July 17–30). Various articles on XRP price movements, technical patterns, and analyst predictions. See individual citations in the text.