XRP has faced a dramatic drop, plummeting over 33% from a high of $2.92 to a low of $1.95, marking its lowest price since December 20, 2024. Just two days ago, XRP had touched a high of $3.13, leaving many investors perplexed at this rapid descent.
XRP is not alone in this bearish trend. Bitcoin also witnessed a dip, falling to $91K from $100K in just two days. Other altcoins, including Dogecoin and Shiba Inu, have experienced even steeper declines, with losses nearing 40%. While market fluctuations are nothing new, analysts have pointed to a new catalyst for this downturn: former President Donald Trump’s recent economic policies.
The Trump Effect: A Catalyst for Market Volatility
On February 1, 2025, Trump imposed significant tariffs on imports from Mexico, Canada, and China, a move that has caused ripples in the global economy. Specifically, a 25% tariff was placed on goods from Mexico and Canada, and a 10% tariff was levied on Chinese imports. These measures are part of a broader strategy aimed at addressing issues like illegal immigration and drug trafficking.
In retaliation, Mexico, Canada, and China have announced their own tariffs and are preparing legal challenges against the U.S. This escalation of trade tensions has sparked fears of a global trade war, fueling uncertainty in the markets. Consequently, Bitcoin and XRP both saw major dips, with Bitcoin crashing to a three-week low and XRP briefly dipping below the $2 mark after trading near its all-time high just days ago.
XRP’s Recovery Potential
Despite the downturn, many investors view this as a buying opportunity. Calls to “buy the dip” have flooded the XRP community, with some analysts predicting that XRP could soon see a massive rebound, potentially reaching the $4 range in the next bullish wave.
$XRP NEXT MOVE! pic.twitter.com/2a2NcaNpYi
— XRP whale (@realXRPwhale) February 2, 2025
As of now, XRP has regained some ground, trading at $2.34, a 20% recovery from its low of $1.95. However, it remains 19% below its recent peak, highlighting the continued uncertainty in the crypto market.
In the face of global economic challenges, XRP’s recovery could be a significant story to watch as it navigates these turbulent times.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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