Trump’s Tariffs: The Hilarious Rollercoaster of XRP Prices!

by

Once upon a time in the bustling bazaar of finance, there existed a digital chap known as XRP. This plucky contender was hailed as the golden goose of cross-border liquidity, yet here it found itself, locked in a brawl with the untamed beast of high volatility, desperately trying to break free from its narrative prison.

The situation grew tenser than a cat in a room full of rocking chairs when President Trump decided to throw a tariff tantrum. His escalating drama sent ripples through the market, prompting investors to scurry toward safety like mice fleeing a hungry cat. And lo and behold, the question echoed through the halls: Are these tariffs giving XRP a swift kick where it hurts?

  • XRP has taken a nosedive of nearly 12% since mid-January, all thanks to the geopolitical soap opera and the ever-looming threat of tariffs.
  • The market sentiment hit rock bottom after Trump’s colorful warnings to the EU and Canada, triggering a mass retreat from the digital asset party.
  • Yet, amidst this financial fracas, the bones of XRP remain sturdy, with stablecoin liquidity soaring fivefold and institutional ETF inflows strutting in like they own the place.

Ah, the tariffs-those delightful little impositions that act like indirect taxes on everyone’s pocketbooks. They’ve been known to shake the markets like a maraca in a samba band, creating a cacophony of uncertainty long before any real change takes shape. It’s akin to a bad dinner conversation that leaves everyone feeling uneasy without revealing who actually cooked the meal.

The latest episode of Trump’s tariff saga unfolded on January 17, aimed at EU partners who dared not align with his lofty Greenland ambitions. Four days later, when a shaky framework deal was reached, the 10% threat fizzled out faster than a soda left open too long. But hold your horses; another warning shot was fired at Canada regarding their trade dalliance with China, painting them as the drop-off point for Chinese wares.

As this geopolitical friction continued to stoke fears of a global trade war, the crypto market took a dive, plummeting nearly 8% from its zenith in mid-January. Investors liquidated their crypto holdings faster than a magician can pull a rabbit from a hat, funneling their cash into traditional safe havens-think gold and silver, which have recently been enjoying a glittery resurgence.

XRP, bless its heart, waddled along the broader crypto currents, down nearly 12% and losing grip on the fabled $2 support level, retreating to levels reminiscent of the dawn of the year.

Last year, when the U.S. unleashed its reciprocal tariffs on China and others, XRP seemed largely unfazed, bouncing back swiftly thanks to Ripple’s legal win over the SEC, which had sent prices soaring to dizzying heights by mid-year.

As the clock ticked, XRP was trading at $1.88, inching ominously close to the $1.79 mark-the last refuge it found when the tariff storm erupted last April.

Despite Everything, XRP Struts Its Stuff

In spite of the swirling chaos, the backbone of XRP remains unyielding. On-chain metrics reveal that demand for the token is holding steady.

Stablecoin liquidity on the XRP network has surged-a veritable explosion from $85 million at the start of tariff tensions to a staggering $406 million today! This growth is thanks to Ripple’s RLUSD, now the reigning monarch of the stablecoin kingdom.

Price swings haven’t scared off long-term holders, either. Recent market data shows that investors have been moving XRP off exchanges steadily since the tariff kerfuffle began. Take a gander at this:

Meanwhile, institutional investors have donned their brave faces. Data reveals that U.S. spot XRP ETFs have seen positive monthly inflows since their November debut, raking in a tidy $1.26 billion in total net inflow. Not too shabby for a Sunday stroll!

What Lies Ahead for XRP?

Clearly, XRP’s fortunes during this turbulent time have mirrored the overall mood of the market rather than reflecting a lack of utility.

If the tariff drama escalates into a global trade circus, investor sentiment could take another hit, pushing prices lower in the short term. But should these tariffs serve as effective bargaining chips, with diplomatic resolutions softening their blow, XRP might just sidestep the worst of it.

On the daily chart, XRP has been dancing within a descending parallel channel since July of last year. Now, while such patterns typically signal further decline, a successful breakout from the upper edge can often lead to a jubilant bullish reversal. Who knew charts could be so theatrical?

In early January, XRP bulls attempted a breakout as the entire crypto market rallied toward new yearly highs, only to be thwarted by profit-taking and liquidations dragging the price down faster than a lead balloon.

This dramatic plunge birthed a falling wedge pattern-another beloved bullish reversal setup in the world of technical analysis. A breakout from this formation might just catapult XRP back above the $2 psychological resistance, aiming for a projected $2.23 based on the wedge breakout.

However, hold onto your hats, because bumps may await. Momentum indicators like the MACD and RSI are sending mixed signals of exhaustion, with MACD lines trending downward and RSI forming a bearish divergence. It’s enough to make any trader’s head spin!

Read More

2026-01-29 14:39