XRP Plummets 15% to $1.80 Amid Trade War Fears

On April 7, the price of XRP experienced a significant decline, dropping by 15% to $1.80, marking its lowest point in two months. This downturn was driven by investor concerns over a potential "Black Monday" event, sparked by President Trump's aggressive tariffs and trade policies. The term "Black Monday" refers to the historic stock market crash of 1987, and its resurgence in search volumes indicates heightened anxiety among investors about a similar market crash.

The crypto market has seen a total market cap plunge of 9% to $2.4 trillion, while the US stock market is on track for one of its worst trading days, with S&P 500 futures dropping by 2.88%. This selloff is a result of traders reducing their exposure to risk assets due to the tariffs that have ignited a US-China trade war. President Trump addressed these market concerns on Sunday, stating that he was "open to talking" but did not reveal any plans to ease his policies. He emphasized that the country has grown stronger and will eventually become unparalleled.

As a result of these tariffs, XRP has experienced one of its most severe selloffs this year. The surge in liquidations has raised concerns about a potential dip to $1. Data from Coinglass shows that over $40 million in open positions on XRP have been liquidated, with $36 million of these being long positions. This has added to the sell-side pressure, pulling the XRP price down further. Ripple's open interest has also plummeted below $3 billion, and funding rates have turned negative, indicating a bearish market sentiment as short sellers outpace long buyers.

The one-day price chart for XRP shows a drop from a key support zone, and the cryptocurrency has fallen below the 200-SMA, confirming a shift from a bullish to a bearish trend. The 50-day SMA is also forming a bearish crossover with the 150-day SMA, which, once confirmed, could lead to a steep downtrend for XRP. Technical indicators support this bearish outlook, with the RSI declining to 30, indicating intense selling pressure. However, an oversold RSI might also suggest that the downtrend is nearing exhaustion.

According to top trader Peter Brandt, if XRP loses support at this critical zone, it could drop to $1. This outlook aligns with the current bearish trends prevailing in the market. The combination of aggressive tariffs, a potential "Black Monday" event, and the technical indicators all point to a challenging period for XRP, with a potential 44% crash looming on the horizon.