XRP Drops 12.8% Weekly Amid Trump Tariff Uncertainty

The crypto market has experienced a downturn as April begins, with Trump’s tariff announcement on April 3 contributing to the bearish sentiment. XRP, like other cryptocurrencies, has seen a significant price drop, reaching as low as $2.08 on March 31 before recovering to a high of $2.19. However, the impending tariffs are expected to create market chaos and uncertainty.

As of the latest update, XRP is trading at $2.10, marking a 0.8% daily price increase but a 12.8% decline over the past week. Technical indicators for XRP are mixed, with the Relative Strength Index (RSI) showing that XRP has exited the oversold zone, which could signal a potential change in trend. However, the Ichimoku Cloud and short-term Exponential Moving Averages (EMAs) remain bearish, indicating that the downtrend may continue.

Despite recent positive developments, such as the SEC dropping its case against Ripple, the macroeconomic factors seem to be overpowering these positive news stories. The funding rate for XRP is currently at -0.14%, indicating a bearish outlook as short traders are using leverage, reflecting low confidence in the market. The margin demand for XRP is also bearish, with the long-to-short margin ratio around 2x, the lowest in six months.

The general interest in XRP has surpassed Bitcoin on some occasions, with significant spikes in Google searches on March 2 and March 19. However, the positive news has failed to revive the bullish market sentiment, raising the possibility of a further XRP price crash. A sudden rally could occur if there is a positive development regarding the trade war, but the current outlook remains bearish.

The XRP price prediction for April is influenced by the negative funding rate and the impending tariffs, which are expected to increase costs for businesses and consumers, potentially decreasing demand for cryptocurrencies. The recent recovery to $2.10 is under scrutiny as market participants assess whether this level can hold amidst the growing uncertainty. The short-term outlook for XRP suggests it may consolidate around $2.50-$2.80, depending on market conditions. However, this forecast is subject to change based on various factors, including the impact of Trump's tariffs and overall market sentiment. The current bearish environment and looming tariffs pose significant challenges to any optimistic outlook for XRP.