XRP Price Faces Crucial Test at $2 — Will Ripple Bounce Back or Break Down Further?

XRP news shows that today, this token is experiencing a downturn as the crypto market sees a decrease in value. Today’s marketwide fall in value can be attributed to global economic uncertainty, which pulls investors away from risk assets. The total crypto market capitalization has dropped 1.42%, standing at $2.65T as of writing this. As such, coins like Bitcoin and Ethereum have also seen more than 2% of daily price decrease. We also had a 3.83% XRP price drop in the last 24 hours. However, based on our projections, the XRP price surges soon. 

What’s Causing XRP’s Price Swings This Month?

With today’s XRP price drop, this coin currently stands at $2.05, which shows an 11.71% monthly decline. However, the price is still up 14.10% when compared to 7 days ago. This crash was likely caused by Donald Trump’s intensifying trade war with China, as we saw a recent development. Trump has now banned all exports of H20 chips to China, creating global economic turmoil once again. This move is projected to cause billions of dollars in damages to Nvidia. This led to a crash in the stock market as well, as this sector is also a risk market. 

What Caused the Sudden Drop in XRP Price?

This crash comes after we saw an XRP price surge to $2.25 over the weekend. Such a surge was caused by US President Donald Trump’s decision to put a 90-day pause on tariffs. However, this pause excluded the tariffs that were put on Chinese imports. The Ripple CEO, Brad Garlinghouse, also announced in an interview that they have reached an agreement with the SEC. However, the mentioned macroeconomic factors and now a sudden and sharp increase in liquidity have caused an XRP price drop.

Chart 1 – XRP exchange inflow data, published on CryptoQuant, April 16, 2025

According to Chart 1, exchange inflows for XRP have gone up drastically from 28 million on April 8 to 55.6 million today, on April 16. Such a significant increase in liquidity can lead to increased selling pressure and turn the market sentiment bearish. This spike could have been caused by a whale or a number of whales selling their token at the same time. Additionally, futures contract data could show how the market sentiment has changed and how investors are reacting. 

Is  Bullish XRP Price Prediction Possible After Liquidations?

In the last 24 hours, XRP has seen over $5.1 million in long positions getting wiped out. Additionally, there have been $1.25 million of short positions getting liquidated. This alone shows that the market sentiment is bearish for XRP and that investors don’t have confidence in XRP’s future. Additionally, the long-to-short ratio of 0.938 suggests that the market expects more XRP price drops in the future. However, there is a bullish XRP price prediction scenario where XRP can escape further declines in value. 

Is XRP Preparing for a Bullish Breakout or a Bearish Turn?

Based on the recent price action of the XRP token, there is a chance for a rally. If XRP could retake the $2.10 level, it could soar to $2.24, where it has been rejected multiple times. This price point represents the 50-day and 100-day Exponential Moving Averages and as such is a strong resistance. However, XRP price prediction turns bearish if this token falls below the $2 point; it could crash as far as $1.61.