XRP price has continued its downward trend, slipping further down to $2.74 within a few hours after reaching a peak of $2.92. The token has lost around $18 billion in market cap since its slipped below $3.
Summary
- XRP extends losses below $2.80 as bearish momentum strengthens across the crypto market after Trump announces new tariffs.
- Selling pressure and risk-off sentiment weigh heavily on the token’s short-term outlook as it falls further below the 30-day moving average.
XRP price has fallen lower, hinging at $2.74 as it slips further down. After taking a hit following the crypto mass liquidations, the token has failed to recover back to the $3 level. It appeared to have a short-rebound period, but fell short of expectations of reaching beyond $2.99.
At the moment, the entire crypto market is under intense selling pressure. On Sept. 26, the total crypto market cap dropped over 2% in the past 24 hours to $3.85 trillion. Most of the major tokens have fallen off the green zone, with XRP (XRP) taking a harder hit than most by plummeting 2.9%.
On the same day, President Donald Trump announced new tariffs that would come into effect on October 1st. Trump said that the U.S. would impose tariffs on any branded or patented pharmaceutical products that are not manufactured in the U.S. Fears of tariffs seemed to put more pressure on crypto markets, as seen in historical patterns throughout this year.
While Bitcoin (BTC) and Ethereum (ETH) managed to stabilize somewhere below the previous threshold, XRP price broke below key support levels and failed to hold previous resistance-turned-support zones. That shift in technical structure allows bears to dominate in the short-term until stronger bids emerge.
Despite recent approval of the first U.S. XRP exchange-traded fund by the SEC, it has been dampened by broader macroeconomic headwinds. While ETF approval would usually spark optimism and attract institutional inflows, but the positive effect has been overshadowed by concerns in traditional markets.
Federal Reserve Chair Jerome Powell recently cautioned that financial markets may be overheating, pointing to stretched valuations in certain asset classes. His comments have made investors more risk-averse, with many pulling back capital from risk assets like cryptocurrencies.
According to data from CoinGlass, as much as $18 billion was wiped out from the XRP market cap in the past seven days ever since the token slipped below $3.
How will XRP fare in the short-term run?
XRP price analysis
XRP price has broken below its 30-day moving average at $2.7625. This decline confirms short-term bearish momentum as sellers gain control, pushing the token to new lows. The moving average is now trending downward, signaling a continuation of selling pressure unless a quick recovery occurs.
The Relative Strength Index has dropped sharply to 24.43, placing XRP price firmly in oversold territory. While this indicates that selling may be overextended in the immediate term, it also reflects strong bearish momentum dominating the market right now. In many cases, an RSI this low can trigger a technical rebound, but the intensity of the current decline suggests caution before assuming buyers will step in.
In terms of downside risk, the immediate support lies around $2.745 to $2.740, which XRP price is now testing. A decisive break below could expose the token to deeper losses, with the next support likely forming near $2.725. If bearish sentiment across the crypto market persists, XRP price could struggle to defend these levels and fall further down the line.
For a rebound to happen, XRP price would need to reclaim $2.760 and then challenge the $2.770 resistance zone. A recovery above the 30-period MA would be an early sign of stabilization, however a move above $2.770 could pave the way for a retest of $2.790.
