In a world where economic triggers are no longer confined to central banks, a single policy announcement can send shockwaves across global markets. That’s exactly what happened when the United States reignited a tariff war under the leadership of President Donald Trump. Just as Ripple launched RLUSD on Ripple Payments — a move expected to drive bullish momentum for XRP — the cryptocurrency plunged, dragging the rest of the market with it.
XRP’s moment in the spotlight began with the launch of Ripple’s RLUSD stablecoin on Ripple Payments. The integration promised faster, cheaper, and more reliable cross-border transactions. Financial experts viewed it as a strategic step for Ripple in expanding utility across institutional corridors.
However, euphoria turned to panic when President Trump announced a sweeping 10% tariff on all US imports, alongside reciprocal tariffs mirroring trading partners’ existing rates. This surprise move dismantled the bullish XRP narrative almost instantly.
According to FXStreet, XRP dropped by 5% in just 24 hours, with $710 million in realized losses. This marked the highest realized loss event since December 2022.
The collapse wasn’t just a result of tariffs but also a reflection of deep market psychology. Historically, XRP has shown a correlation with macroeconomic tensions. Tariffs signal inflation risks and slower global trade, both of which are red flags for speculative assets like cryptocurrencies.
The market reaction activated what traders call a Head-and-Shoulders (H&S) pattern — a technical setup signaling a potential reversal. Analysts are closely watching the $1.96 support level and the 200-day Simple Moving Average (SMA). A break below these levels could pull XRP down to $1.35.
Despite the turmoil, RLUSD’s launch still stands as a significant development. With a market capitalization nearing $250 million and $10…
