XRP Price Faces Potential 22% Drop Amid US Tariff Hikes
The altcoin market, led by XRP and Ethereum, saw a significant decline over the past 24 hours. Key points include:
- Total crypto market cap dropped over 12% to approximately $2.85 trillion.
- Over $1 billion liquidated from leveraged positions, primarily affecting long traders of Bitcoin.
- Bitcoin fear and greed index fell to around 15%, indicating extreme fear among traders.
- Stablecoin trading volume exceeded $127 billion in 24 hours.
XRP Price Analysis
XRP rebounded 35% recently but has since dropped about 20% to around $2.32. Its market metrics include:
- Fully diluted valuation is approximately $242 billion.
- 24-hour average trading volume around $11.6 billion.
- Potential head and shoulders pattern forming, with bearish divergence on the RSI.
- If selloff continues, support level may retest around $1.69.
$XRP could invalidate this head-and-shoulders pattern with a daily close above $3, potentially paving the way for a rally to $5!
— Ali (@ali_charts) March 3, 2025
Whale Activity
Recent on-chain analysis shows:
- Ripple locked back 500 million XRP, valued over $1.4 billion, after receiving 1 billion coins from escrow.
- Whales accumulated around 1 billion XRP in the last 24 hours, now holding approximately 10.21 billion XRP coins.
Whales bought nearly 1 billion $XRP in the last 24 hours!
— Ali (@ali_charts) March 3, 2025
Broader Context
Institutional interest in XRP has increased due to changes in U.S. regulatory stance under President Trump. Notable developments include:
- SEC dropped cases against multiple crypto firms, suggesting a favorable environment for XRP.
- Ongoing SEC vs Ripple case expected to resolve positively, aiding XRPL development.
- Ripple Labs is enhancing DeFi capabilities, including a new fiat-backed stablecoin, RLUSD.