XRP News Today: XRP price falls below $3 amid Fed policy, trade tensions, and regulatory uncertainty

XRP has experienced a sharp decline in value over the past several days, with its price dropping below $3 amid a combination of macroeconomic, geopolitical, and internal market dynamics. The sell-off has been particularly pronounced, with XRP being one of the most heavily pressured cryptocurrencies in the current market environment. The decline reflects broader risk-averse behavior in financial markets, driven by a restrained monetary policy stance from the U.S. Federal Reserve and escalating trade tensions [2].

The Federal Reserve’s decision to hold interest rates steady, despite growing expectations for a cut, has significantly dampened investor risk appetite. This has led to a shift in capital away from speculative assets, including cryptocurrencies, toward safer investments. As a result, XRP and other altcoins have faced intensified selling pressure amid the broader market selloff [2].

Further compounding the issue, the U.S. government's imposition of a 35% tariff on Canadian imports, alongside a newly introduced 10% global tariff, has heightened global economic uncertainty. These policy moves have raised concerns about inflationary pressures and potential disruptions to international trade, contributing to the ongoing downturn in XRP and major cryptocurrencies [2].

On the technical side, large-scale liquidations triggered by macroeconomic volatility and overleveraged positions have accelerated price declines. XRP, being one of the most liquid and widely traded altcoins, was particularly affected during this correction period. On-chain data also reveals that a large portion of XRP holders are currently in profit, increasing the likelihood of profit-taking during periods of uncertainty. This behavior, combined with heightened volatility, has further fueled the downward trend [4].

The regulatory environment also continues to play a key role in shaping investor sentiment. The ongoing uncertainty surrounding the approval timeline for a potential XRP spot ETF has weighed heavily on market confidence. Although there is optimism about regulatory progress, delays and unclear signals have limited enthusiasm and reinforced a cautious stance among investors, especially in the context of broader economic instability [2].

Whale activity has also contributed to the sell-off. With over 93% of XRP’s supply in profit, a sharp wave of profit-taking has been observed, intensifying the downward movement. Additionally, reports of whale offloading and theft-related headlines have further stoked fears and increased volatility, making XRP one of the worst-performing assets this week [4].

The legal landscape surrounding Ripple also remains a source of concern. The delayed appeal vote by the SEC and ongoing legal uncertainties have created a cloud of doubt, potentially affecting investor confidence and the broader market outlook [7].

Unless there is a reversal in macroeconomic policy or a clear regulatory breakthrough, XRP is likely to remain under pressure in the near term. The convergence of monetary policy constraints, trade tensions, internal market dynamics, and legal uncertainties has created a challenging environment for the asset [2].

Source: [1]https://m.economictimes.com/news/international/us/crypto-darling-xrp-under-pressure-price-dips-below-3-whats-causing-the-drop-is-a-massive-selloff-coming/articleshow/123042471.cms

[2]https://timestabloid.com/major-reasons-why-xrp-is-down-today/

[4]https://cointelegraph.com/news/3-price-at-risk-why-xrp-was-one-of-the-worst-peformers-this-week

[7]https://www.fxempire.com/forecasts/article/xrp-news-today-legal-clouds-etf-bets-stir-volatility-in-xrp-price-forecast-btc-below-115k-1537951