- XRP crashes over 11% amid massive crypto market liquidations.
- Trump’s tariff threats add pressure to already falling XRP price.
- Weak altcoin sentiment deepens XRP losses during market-wide correction.
XRP has plunged to $3.08, marking a sharp decline of 11.2 percent in the past 24 hours. This significant drop has positioned the token among the biggest losers in the current market correction, with investor sentiment turning increasingly bearish.
Its fall is, however, accompanied by a broader selloff in the crypto market, with a fall in the total capitalization by 1.4 percent to $3.88 trillion. Aggressive crypto derivatives liquidation is one of the key reasons that led to the collapse of XRP.
More than $634 billion of open interest in futures and options contracts came down in one day, which resulted in an eleventh contraction in derivatives.
Concurrently, Bitcoin’s market dominance has decreased, dropping by 5.4 percent within the last month. In spite of its current stabilization at 60.88 percent, the overall fall has favored liquidity among altcoins such as XRP.
Also Read: Ripple CEO Releases Important Message to XRP Holders Amid Price Hike
This change has left XRP vulnerable, particularly in a market with low confidence towards altcoins.
The altcoin Season Index, a measure of how altcoins are performing compared to Bitcoin, sits at 43 on a 100-point scale. This indicates that the situation is not yet favorable to altcoins, and the sharp decline of XRP can indicate a lack of good purchases.
Trump’s Tariff Threats and Global Trade Tensions Add to XRP’s Decline
Rising global economic uncertainty is also amplifying XRP’s losses. U.S President Donald Trump announced on Truth Social that he plans to increase tariffs on countries that do not open their markets to American goods.
He pointed to a new trade deal with Japan that reduced a planned 25 percent tariff to 15 percent but warned that higher tariffs would apply to nations that continue to impose trade barriers.
This has created new panic in the market, more so in the risk-correlated sectors such as crypto. This prompted investors to sell across volatile assets, and XRP was a victim of the intense selling pressure.
Although Treasury Secretary Scott Bessent confirmed to Fox in an interview that more trade agreements will probably arrive soon, among them potentially being a deal with the European Union, XRP has not experienced any optimism.
Whereas Bitcoin briefly surged to more than $118,000, thanks to the news, XRP gained no traction and still trades at a loss.
XRP continues to dwindle under pressure as traders shift their capital to low-risk altcoins. The synergy of derivative market stress, lack of altcoin momentum, and an increase in geopolitical uncertainty pushed its price up to multi-week lows.
Conclusion
Widespread market liquidations, reduced Bitcoin dominance, and intensifying trade concerns drove XRP’s crash to $3.08 today. With investor caution remaining high, XRP continues to struggle under the weight of these combined pressures.
Also Read: XRP Lands $20M Backing from Nature’s Miracle Following Trump’s Crypto Push
