Key Insights:

• XRP’s market cap has fallen by $18 billion after breaking key support levels below $3.
• The price drop coincided with new tariff announcements and a 2% drop in total crypto market cap.
• XRP’s RSI reached 24.43, signaling oversold conditions but continuing bearish sentiment.

XRP continues to face significant downward pressure as its price slumped to $2.74, extending its recent losses. The token, which had recently peaked at $2.92, has now shed approximately $18 billion in market capitalization. This sharp decline follows a broader downtrend in the cryptocurrency market, triggered by several factors, including global economic pressures and new tariff announcements.

XRP’s struggles are part of a larger trend in the crypto market, which saw the total market cap drop over 2% in the past 24 hours, reaching $3.85 trillion. On the same day, former President Donald Trump unveiled new tariffs targeting non-U.S. pharmaceutical products. The news sparked fears of broader economic disruptions, further intensifying the bearish momentum in the crypto space. Consequently, XRP fell below crucial support levels, which undermined short-term recovery prospects.

Technical Breakdown Signals Further Declines

Technical indicators confirm that XRP’s outlook remains grim. The token has fallen below its 30-day moving average at $2.7625, a critical level that indicates short-term bearish sentiment. The Relative Strength Index (RSI) has dropped sharply to 24.43, signaling that XRP is deeply oversold. While this suggests that selling may be overdone, the ongoing bearish momentum points to a continued struggle for XRP in the short run.

Currently, XRP is testing key support levels around $2.745 to $2.740. A decisive break below these levels could expose the token to even deeper losses, with the next support zone forming around $2.725. If the broader market sentiment remains negative, XRP could face additional downside risks. On the other hand, a rebound is only possible if XRP can regain its position above $2.760, followed by a challenge to the $2.770 resistance zone.

ETF Approval Fails to Offset Broader Concerns

Despite the recent approval of the first U.S. XRP exchange-traded fund (ETF) by the SEC, the broader market outlook has overshadowed any potential optimism. Traditionally, such approvals could attract institutional inflows, but the impact has been muted amid the prevailing economic uncertainties. Comments from Federal Reserve Chair Jerome Powell about overheated financial markets have made investors more cautious, contributing to a risk-off sentiment across asset classes, including cryptocurrencies.