The price of XRP fell to $2.17 on Friday, marking its lowest level in weeks, amid a combination of macroeconomic factors and trade tensions that have shaken financial and cryptocurrency markets.
Inflation in the U.S. and concerns over tariffs
The U.S. core personal consumption expenditures (PCE) price index for April showed a year-over-year increase of 2.5%, the lowest level since March 2021, meeting market expectations. Although this slowdown in inflation could be seen as positive, concerns over new tariffs imposed by President Donald Trump, especially towards China, have created uncertainty in the markets.
Additionally, a recent court decision that initially overturned most of the tariffs from the second Trump administration was suspended by a federal appeals court, adding more uncertainty regarding future trade policy.
Massive liquidations in the XRP market
The drop in the price of XRP has caused significant liquidations in the derivatives market. In the last 24 hours, approximately $30 million in positions have been liquidated, with traders holding long positions being the most affected, suffering losses exceeding $29 million.
Open interest (OI) in XRP has increased by more than 10% in 24 hours, reaching $4.2 billion, while transaction volume has risen by 42% to $6.3 million, indicating growing volatility in the market.
Outlook for XRP
With the price of XRP hovering around $2.17, analysts point out that a break below the key support level of $2.20 could lead to a drop towards $1.76 or even $1.55, where the 200-day simple moving average is located. On the other hand, a recovery above $2.48 could reactivate the bullish momentum and push the price towards $3.00.
In summary, the combination of inflation data, trade tensions, and massive liquidations has generated high volatility in the XRP market. Investors should stay alert to macroeconomic and technical developments that could influence the future direction of the price.
