Will ‘Liberation Day’ tariffs send XRP below $2? 
Cryptocurrency Apr 2, 2025 Share
There is a distinct possibility that XRP below $2 could soon become a reality.
Donald Trump’s ‘Liberation Day’ tariffs are set to be announced later today. While duties levied on imports don’t have a direct effect on the cryptocurrency market, they do have an indirect effect — which has proven to be no less impactful.
Simply put, the budding trade war brings resurgent fears of inflation, increases the possibility of recession, and decreases the odds of long-awaited rate cuts. This tends to make investors more than a little skittish — resulting in a risk asset selloff and a pivot to more conservative holdings.
Picks for you
Is Dogecoin hinting at U.S. economy’s next move? Strategist breaks it down 40 mins ago Here’s how much Trump’s Presidency has cost Elon Musk so far 2 hours ago AI predicts XRP price for April 30, 2025 3 hours ago Is Bitcoin dead? Crypto fund founder slams BTC as ‘out-of-date' 6 hours ago
At press time, XRP was changing hands at $2.12. A 14.02% drop on the weekly chart has brought year-to-date (YTD) gains down to 1.91%.
XRP price 1-week and year-to-date (YTD) charts. Source: Finbold
Despite a landmark legal victory, recent events have not provided enough of a catalyst to sustain an upward trajectory for the digital asset. The token has lost roughly $26 billion in market capitalization since the conclusion of the SEC case.
At present, the $2 mark represents a crucial and psychologically important support level. Ahead of the tariff announcements, crypto traders seem to have turned bearish. The possibility of XRP’s price falling below $2 is becoming increasingly plausible, especially if investors continue to offload risk assets.
Short ratio and supply dynamics could send XRP price below $2
On April 1 and April 2, short positions outnumbered long positions, per data retrieved by Finbold from CoinGlass. To be more precise, at present, the long/short ratio of XRP stands at 0.93, with 51.62% of newly opened positions being short sales.
XRP short ratio chart. Source: CoinGlass
In addition, on April 1, Ripple unlocked 500 million XRP — and with 500 million more well on the way, supply and demand dynamics could exert additional downside pressure.
While the present outlook remains bearish, the token’s long-term prospects appear to be intact, at least per technical analysts, as independent signals provider Investing Scope recently highlighted a possible channel up formation. If legitimate, the pattern could outline a pathway to levels as high as $6.50.
XRP price chart with channel-up chart pattern. Source: Investing Scope on TradingView
With that being said, readers should exercise caution in the near term, as significant volatility is expected in the coming days.
Featured image via Shutterstock