XRP Suffers Heavy Sell-Off Following Global Market Reaction to Tariff Announcement
Ripple’s price plummeted dramatically following President Trump’s tariff announcement, which triggered widespread panic selling in financial markets around the world. In just a few hours, nearly 900 billion in total crypto market capitalization vanished as risk aversion took precedence over speculative sentiment in a significant way.
XRP reflected the broader market’s significant liquidation trend, disrupting several crucial structures on both the daily and four-hour charts. The breakdown from the 30 to 31 resistance zone wiped out weeks of consistent gains, leading to significant liquidations and compelled exits.
Daily Chart Highlights Breakdown From Multi-Month Symmetrical Triangle Pattern Formation
Recently, XRP made a significant move on the daily timeframe, breaking decisively below the symmetrical triangle pattern that had been forming since July. The rejection from the descending resistance aligned seamlessly with the macro market crash, underscoring the technical weakness prevalent among major altcoins across the board.
Prices dropped sharply toward the 12 threshold, reflecting about a 55% decline from recent peaks, before experiencing a brief period of stabilization. Even with the sharp decline, the long-term framework continues to hold up technically, provided that higher lows are maintained above the ascending trendline support.
XRP Faces Heavy Capitulation as Prices Break Below Key 28 Demand Zone, Triggering Stop Losses
The four-hour chart highlights the extent of capitulation as XRP significantly broke through the mid-range and 28 demand zone levels. This event set off a chain reaction of stop losses, eliminating overleveraged positions and swiftly pushing prices into extreme oversold territory.
A swift recovery ensued, suggesting that initial buyers stepped in to absorb the supply and stabilize prices within the larger recovery framework, albeit temporarily. XRP is currently trying to regain the 27 to 28 area, which is now serving as short-term resistance after a recent structural breakdown.
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The Key Resistance Zone at 28 Represents a Critical Barrier for Potential Relief Rally Continuation
Reestablishing and confirming 28 as support may signal the start of a relief rally aimed at the next resistance cluster around 30. Achieving success in this context could reignite momentum, helping to rebuild confidence among participants following the significant downturn caused by recent tariff-related turmoil.
Failure to exceed 28 would confirm the prevailing bearish trend, likely prolonging the correction towards the 22 or even 20 range once more. Traders are exercising caution as they wait for confirmation through consistent closes above these thresholds before declaring that a meaningful reversal is underway.
Ripple’s RSI Enters Oversold Zone, Indicating Possible Rebound as Selling Pressure Weakens
The relative strength index has dropped significantly into oversold territory, suggesting that selling fatigue has set in following a series of intense downward movements. In the past, comparable readings have often led to short-term recoveries, assuming that volume stabilizes and sentiment starts to shift positively over time.
At the same time, the moving average convergence divergence histogram indicates a decreasing gap between the signal lines, suggesting that bearish momentum is gradually lessening. This kind of technical convergence frequently suggests a possible recovery, particularly when it is supported by enhancing market breadth indicators on major exchanges worldwide.
The Macro Environment Continues to Drive Market Sentiment and Near-Term Volatility Levels
The overall macro environment continues to show signs of fragility, with trade tensions between the United States and China significantly influencing risk narratives. Investors are actively analyzing the consequences of the 100 tariffs, as well as China’s stringent export policies that are impacting the semiconductor and defense industries on a global scale.
The recent developments heighten uncertainty, discouraging bold moves in risk assets, including cryptocurrencies such as XRP, in the present environment. With the enhancement of geopolitical stability, there is potential for capital flows to resume, which could aid in the gradual normalization of prices and foster a structural recovery across the digital asset markets as a whole.
Ripple Must Hold Above Ascending Trendline to Preserve Its Long-Term Bullish Market Structure
It is crucial to keep the price above the green ascending trendline to sustain the bullish macro structure that was established earlier this year. A confirmed rebound from that zone may lead to the formation of higher lows, setting the stage for a potential continuation toward previous highs.
On the other hand, consistent closes below 20 would undermine the long-term bullish outlook, indicating a prolonged period of consolidation before any renewed efforts to rise. Currently, traders are closely observing volume inflows, sentiment data, and broader macro cues to assess Ripple’s upcoming significant directional movement with caution.
