The XRP price fell sharply on Tuesday and that affects investors directly. Just like Bitcoin (BTC) and Ethereum (ETH), the coin lost a few percent, causing it to once again lose the important level of 2 dollars. The crypto market looks nervous and uncertainty prevails. XRP is trading at around $1.90 at the time of writing.
Why is the crypto market falling?
The decline in XRP is not an isolated event. The entire crypto market took a big hit in recent days due to increasing geopolitical tensions. Investors are mainly reacting to the looming trade war between the United States and the European Union. President Donald Trump recently said he wants to impose import tariffs of ten percent on several EU countries.
Trump wants Greenland to become part of the United States. If the European Union does not agree to this, he believes, import tariffs could rise further. However, the EU does not seem to have any intention of simply giving in and is considering countermeasures.
This uncertainty is causing unrest in financial markets. Risky investments such as crypto are sold first, which is immediately visible in the prices of Bitcoin, Ethereum and XRP.
Failed breakout at $2.40 continues selling pressure
In addition to macroeconomic pressure, the price movement of XRP itself also plays an important role. Last week, the coin failed to break through the resistance around $2.40. That failed momentum turned out to be the starting signal for a sharp correction. Since then, XRP has fallen about twenty percent.
In morning trading, the price even briefly dropped to $ 1.85, before a cautious recovery followed. The loss of the psychologically important level around $2 is causing many investors to become more cautious and secure profits.
Fears of a repeat of 2022 are growing
Glassnode analysts point to worrying similarities with the market structure of 2022. Investors who entered around the tops at the time are once again deeply in the red. That creates psychological pressure. The longer the price remains low, the greater the chance that investors will still sell out of fear.
The comparison with 2022 is sensitive. That year, the crypto market was rocked by the collapse of Terra Luna and later FTX. XRP then dropped from above $1 to around $0.30. According to Glassnode, XRP holders are already experiencing weekly losses of up to $1.2 billion. That further erodes trust.
If support breaks around $1.80, analysts warn that a further decline towards $1 could quickly follow.
Ripple is now building for the long term
Yet the picture is not exclusively negative. Behind the scenes, Ripple is working on its long-term position. The company is expressly seeking cooperation with the American regulator SEC and recently launched a regulated stablecoin.
In addition, Ripple acquired several infrastructure players to further expand the network. In a period in which regulations are becoming increasingly important, the company appears to be consciously positioning itself for a future in which clarity is central. Whether that is enough to stop the current selling pressure on XRP will remain to be seen in the coming weeks.
Source: https://newsbit.nl/grote-waarschuwing-voor-xrp-investeerders-koers-dreigt-te-crashen-naar-1-dollar/
