XRP News – Renewed Pressure as U.S. Tariffs on Mexico and Canada Loom

The remittance-focused cryptocurrency has already seen a sharp decline, shedding nearly 10% in value while broader market sentiment remains fragile.

XRP’s latest downturn comes after President Donald Trump reiterated his administration’s commitment to implementing tariffs on goods from its North American neighbors. Initially paused in early February to allow for negotiations, the trade measures now appear imminent, contributing to heightened uncertainty among investors.

Trump’s upcoming tariffs on Mexico & Canada spark a crypto tumble. Source: Crypto Auris via X

Marketwide, the reaction has been significant. The total cryptocurrency market capitalization has fallen by approximately $230 billion, mirroring the initial response to Trump’s first tariff announcement earlier this month.

Indicators from perpetual futures markets suggest XRP could face further selling pressure. Funding rates, which reflect the cost of holding long or short positions in derivatives trading, have turned negative multiple times over the past five days. This shift indicates traders are increasingly betting against XRP’s recovery.

Total Funding Rate Aggregated by Asset (XRP). Source: Santiment

Additionally, XRP’s open interest—the total number of unsettled futures contracts—remains subdued. Data from Coinglass shows it has stagnated at 1.40 billion XRP, significantly lower than its 2.02 billion XRP level before the early February sell-off.

XRP’s Total Open Interest in USD. Source: Santiment

Despite the bearish indicators, some investors are taking advantage of lower prices. Market exchange statistics for Binance, Kraken, and Coinbase show net outflows on the rise, which suggests that some market participants are accumulating XRP at discounted prices.

As tensions in trade continue to make the headlines, recent regulatory trends can be used as a counterpoint to XRP’s declining trend. The United States Securities and Exchange Commission (SEC) has moved to drop charges against major crypto players like Coinbase and Robinhood Crypto.

The SEC’s Feb. 27 Sunshine Act meeting will directly discuss XRP. Source: AllINCRYPTO via X

This has also fueled speculation that the agency would be more lenient towards Ripple as well, which is already in a multi-year legal battle over whether XRP is or isn’t a security. A positive ruling or settlement would go a long way toward XRP’s long-term future.

Technically, XRP’s price action means that it is moving towards the key support areas. The token has already gone below the $2.55 mark, a level that previously served as the bulls’ essential floor.

Analysts expect the XRP price could rebound from the $2 support amid an ongoing bearish trend. Source: DrDovetail on TradingView

With further decline, investors will pay close attention to the lower edge of the falling triangle at $1.96. A breach of this level could accelerate selling pressure, potentially driving XRP down to $1.35.

On the other hand, XRP needs to reclaim the $2.55 resistance and breach the upper trendline of the descending triangle to be in bullish mode again. Nevertheless, Relative Strength Index (RSI) and Stochastic Oscillator indicators are showing bearish momentum is still in play.

In the future, XRP’s price path will be influenced by a mix of macroeconomic and regulatory drivers. The threat of tariffs on Mexico and Canada may continue to push down risk assets, such as cryptocurrencies. In the meantime, any resolution of Ripple’s lawsuit with the SEC will bring relief or more pressure, depending on the result.

Ripple (XRP) was trading at around $2.26, down 9.24% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

For the time being, investors and traders are staying on guard. While some investors are viewing XRP’s recent sell-off as an opportunity to buy, market sentiment is toward the digital currency needing to withstand another test before it can mount a significant reversal.

With major support levels under threat and general market sentiment going no further than atrocious, XRP’s immediate prospects are less than certain. That being said, as history has shown us, cryptocurrency markets are highly reactive, and one regulatory breakthrough or policy reversal can quickly change the landscape.