Trump’s tariffs spark XRP crash to $1.67. Why is XRP going down? Price drops 25% in a month amid $47M liquidations.

Ripple’s XRP has plunged to $1.67—its lowest price since November 2024—marking a 25% monthly loss. The catalyst? U.S. President Donald Trump’s aggressive new tariffs have sparked fears of a global trade war. These macroeconomic shifts have rocked financial markets, pushing investors away from risk assets like XRP. The latest drop also triggered $47 million in liquidations, deepening the crypto market rout. Investors are now asking: Why is XRP going down, and what can we expect from the XRP price prediction 2025?

Tariffs Spark Crypto Crash as Risk Sentiment Turns Bearish

On April 2, Trump imposed sweeping tariffs: 25% on steel and aluminum, 20% on Chinese goods, and new auto duties. The resulting panic wiped $7.46 trillion off global equities in just two days. Bitcoin fell 7% to $77,077 and Ethereum dropped to $1,538, dragging XRP down to $1.67 by April 7. These trade tensions have triggered a global risk-off sentiment. Bloomberg reports options markets now favor downside bets on Bitcoin and altcoins alike. 

With XRP’s high correlation to Bitcoin (over 0.8), the drop was almost inevitable. The liquidation pain is real. Data from Coinglass shows $968M in bullish crypto bets wiped out in a day—$47M from XRP alone. The selling pressure sent XRP’s market cap plunging by 17% to $ 102.5 B. Volume, however, spiked to $7.65B in 24 hours, signaling panic trades.

XRP Technical Analysis: $1.50 or $1 Next?

From a technical view, XRP is clinging to the lower boundary of its bearish regression channel, which has defined the downtrend since January. If this zone fails, the $1.50 level is next, followed by a psychological test of $1. The $2.00–$2.01 support level, crucial since December, broke down sharply last weekend, confirming the bearish momentum. Until XRP reclaims $2.00, traders should expect continued volatility. 

Despite short-term weakness, long-term predictions remain mixed but hopeful. Changelly expects an average XRP price of $3.32 by the end of 2025. DigitalCoinPrice forecasts $3.51, while Bitwise targets $3.50–$4.00, depending on Ripple’s legal wins and institutional adoption.

XRP Price Prediction 2025: Wide Range from $3 to $27

XRP might be feeling the pressure right now, but many analysts still believe it has strong potential looking ahead. Here’s a quick rundown of what different sources are predicting for 2025:

1)Changelly expects XRP to average around $3.32, based on historical trends and growing adoption.

2)DigitalCoinPrice is a bit more optimistic with a $3.51 average, factoring in possible regulatory clarity.

3)Bitwise offers a $3.50–$4.00 range, playing it safe with a post-ETF approval scenario.

CoinPriceForecast sees a more modest future, suggesting $2.05–$2.50 if growth remains slow.

Conclusion: Should Investors Panic or Prepare?

So, why is XRP going down? The answer lies in Trump’s trade war, shaken markets, and broken support levels. For investors, it’s time to monitor global economic headlines closely and watch XRP’s key levels—$1.70 and $2.00. A rebound is possible, but if panic persists, the next stop could be $1. Risk-tolerant buyers might see this as a discount opportunity, while others may opt to wait for technical confirmation. One thing’s clear—2025 just got a lot more unpredictable for XRP.