XRP Falls 44% During Black Monday Panic Triggered by Tariffs

XRP Price Prediction: Why XRP Is Going Down, Will Ripple Recover?

The cryptocurrency market is facing a dramatic drop today, as the XRP price dropped by more than 20% to reach $1.66 — its lowest level in four months. The selling, triggered by growing investor anxiety over a “Black Monday” event, parallels growing tensions on the traditional markets after aggressive tariff threats by U.S. President Donald Trump.

Ripple’s precipitous drop is accompanied by a wider crypto market collapse and a painful day for U.S. stocks. The total crypto market cap is down 11.5% to $2.35 trillion as of writing, and S&P 500 futures have fallen 4.66%, indicating one of the worst market openings in recent months.

Google Trends Spike Suggests Cryptomarket Panic

According to Google Trends, interest in the term “Black Monday” has been at record highs. This data reports a dramatic escalation of public concern, with investors likening today’s events to the historical 1987 crash of the world’s stock market, where, in one day, the world indices collapsed.

The timing of such a spike falls in line with Trump’s latest comments in an interview on Sunday, when he minimized market turmoil, saying:

> “What’s going to happen with the market? I can’t tell you, but I can tell you, our country has gotten a lot stronger.

Whereas Trump kept trade talks open for negotiation, his unflinching commitment to tariffs has deepened only the market uncertainty — leading traders away from risk assets such as cryptocurrencies.

XRP Liquidations Exceed $63 Million – Bearish Momentum Grows

Data from Coinglass shows that more than $63.63 million in XRP positions were liquidated, of which long positions accounted for almost $57 million. This deluge of long liquidations applied huge selling pressure, pushing prices below key technical milestones.

In parallel, Ripple’s open interest has fallen below $3 billion, and funding rates have gone negative, a sure indication that bears are in charge. The change reflects a wider shift towards a bearish sentiment as short sellers outnumber long buyers.

Head and Shoulders Breakdown More Downside

Technically, XRP broke below the neckline of a prominent head and shoulders pattern, much considered to be a bearish reversal pattern. This action warns of a change in trend from bullish to bearish, particularly after Ripple, too, fell below its 200-day SMA.

Along with this, the 50-day SMA is on the verge of a bearish crossover with the 100-day SMA, a traditional sign of a deeper fall. The Relative Strength Index (RSI) has plummeted below 30, which reflects extreme selling pressure — though such an oversold level might signal a brief relief bounce.

If the trend holds, the target measured from the neckline indicates a possible bottom at about $1.04, a level not visited since last November.

XRP Price Forecast: Will Ripple Plunge to $1 or Launch a Rebound?

Although the overall sentiment remains bearish, XRP price action at crucial support levels and oversold RSI levels indicates a potential short-term bounce. But without supportive news or change in macroeconomic policies, recovery may be temporary.

If the current bearish trend continues and XRP does not retest the support level of $1.80, then a decline to $1.04 is more likely. On the other hand, a breakout past $1.90 with massive trading volume would make this a bearish scenario history and indicate a likely reversal.

Source: TradingView