XRP Price Prediction: XRP on Cusp of 22% Selloff amid Macroeconomic Uncertainty Caused by US Tariff Hikes

The selection of XRP among other altcoins in the US crypto reserve has triggered mixed reactions but whale investors have been on a shopping spree.

Steve Muchoki By Steve Muchoki Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
XRP Price Prediction: XRP on Cusp of 22% Selloff amid Macroeconomic Uncertainty Caused by US Tariff Hikes
Photo: Depositphotos

Key Notes

  • The renewed demand for XRP by whale investors could invalidate a possible Head and Shoulders reversal pattern in the near term.
  • Ripple Labs has made deliberate efforts to enable mainstream adoption of XRPL and XRP via DeFi protocols.

The altcoin industry, led by Ripple Labs’ XRP XRP $2.01 24h volatility: 7.3% Market cap: $116.85 B Vol. 24h: $6.50 B and Ethereum ETH $1 774 24h volatility: 7.1% Market cap: $214.17 B Vol. 24h: $23.98 B , experienced a sharp nosedive in the past 24 hours triggering heavy crypto liquidations. The total crypto market cap dropped by more than 12% to hover about $2.85 trillion on Tuesday, March 4, 2025. More than $1 billion was liquidated from the crypto-leveraged market, mostly involving long traders of Bitcoin BTC $81 842 24h volatility: 6.1% Market cap: $1.62 T Vol. 24h: $47.70 B .

The fear of further crypto selloff significantly increased in the past 24 hours as shown by the Bitcoin fear and greed index, which dropped to around 15%, denoting extreme fear at the time of this writing. Consequently, more crypto traders took shelter from the heightened volatility in the stablecoins market, which recorded a 24-hour trading volume of over $127 billion, which is more than BTC, Ether, and XRP combined.

XRP Price on a Crucial Crossroads

After rebounding over 35% over the weekend, XRP price has dropped around 20% in the past two days to trade about $2.32 on Tuesday, during the mid-London session. The large-cap altcoin with a fully diluted valuation of about $242 billion and a 24-hour average trading volume of around $11.6 billion, has been forming a potential reversal pattern since early December 2024.

From a technical analysis standpoint, XRP price has been forming a potential head and shoulders (H&S) pattern, coupled with a bearish divergence of the Relative Strength Index (RSI). In case of further crypto selloff, XRP price will likely retest the support level around $1.69, which coincides with the daily 0.786 Fibonacci Extension.

Whales on a Shopping Spree

According to on-chain data analysis, Ripple locked back 500 million XRP, worth over $1.4 billion, after receiving 1 billion coins from the escrow wallet. Ripple is expected to distribute the XRP coins through crypto exchange sales, amid renewed demand from whale investors. Furthermore, XRP sales via exchanges were deemed not securities under the US SEC security laws.

According to on-chain data analysis from Santiment, whale investors, with an XRP balance of between 100 million and 1 billion coins, have accumulated around 1 billion coins in the past 24 hours to currently hold around 10.21 billion XRP coins.

Bigger Picture

As Coinspeaker previously noted, the mainstream adoption of XRP, led by institutional investors, has heavily been catalyzed by the administration change in the United States. Under President Donald Trump’s administration, the US Securities and Exchange Commission has dropped several cases against crypto companies led by Coinbase Global Inc (NASDAQ: COIN), Robinhood Markets Inc (NASDAQ: HOOD), Uniswap (UNI), OpenSea, and Consensys on MetaMask.

As a result, the ongoing SEC vs Ripple case will soon collapse in the near future to pave the way for seamless XRPL development. Furthermore, Donald Trump named XRP among other digital assets, including BTC, ETH, Cardano (ADA), and Solana (SOL), to be in the US strategic crypto reserve.

With the notable developments on XRPL by Ripple Labs developers to enhance its DeFi capabilities, including a reliable fiat-backed stablecoin dubbed RLUSD, XRP price is well positioned to gain bullish momentum in the near future.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Cryptocurrency News, News, XRP News
Steve Muchoki
Author Steve Muchoki

Let’s talk web3, crypto, Metaverse, NFTs, CeDeFi, meme coins, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!

Steve Muchoki on LinkedIn