XRP Price Dip: Trump Tariffs & Sell-Off Impact
XRP Price Stabilizes Near $2.20 Amidst Sell-Off
On February 27th, Ripple (XRP) found support around $2.20, but on-chain data indicates significant sell-offs. This could hinder a quick price rebound, raising investor concerns about XRP's short-term trajectory.
Market Factors Impacting XRP
Despite positive developments like the SEC dropping charges against Ripple and acknowledging Grayscale’s spot XRP ETF filing, XRP’s price has trended bearish since early February. Factors contributing to this decline include:
- Higher-than-expected inflation CPI report (Feb. 13th)
- The $1.4 billion exploit on Bybit
- Former President Donald Trump's announcement of tariffs on Canada and Mexico
These events pushed XRP to a three-week low of $2.15 on February 26th.
While a slight recovery to $2.20 occurred, the overall market sentiment remains fragile due to the impending tariffs.
High-Volume Sell-Offs Hinder Rebound
Data from CryptoQuant shows 2 million XRP transactions on February 25th, coinciding with the tariff announcement. This high volume suggests significant sell orders, potentially creating resistance at key price levels during any future rebound.
The chart highlights significant volume spikes on February 3rd and 25th, indicating potential resistance near $2.32 and $2.70. Overcoming these levels requires substantial buying pressure.
XRP Price Forecast: Resistance and Support Levels
XRP’s 50-day moving average of $2.51 sits above the current price, reinforcing the bearish trend. The Bollinger Bands show high volatility, indicating oversold conditions, but weak volume suggests a sustained recovery may be challenging.
Key levels to watch are:
- Resistance: $2.32 (potential cap on recovery)
- Support: $2.00 (next major support level)
A break below $2.16 could signal further decline. Reclaiming $2.32 could indicate a recovery, but strong bullish catalysts are needed to overcome the current bearish momentum. Without such a catalyst, XRP is likely to remain in a tight range.
Disclaimer:
This analysis is for informational purposes only and does not constitute financial advice. Market conditions are dynamic; conduct thorough research before investing in cryptocurrencies.