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The news of Trump’s Tariff war and Ripple’s 400 million XRP unlock, valued at around $1.136 billion has instantly shaken the market, sending XRP’s price plummeting by over 24.6% in just 24 hours. XRP has dropped over 15% amid the recent crypto market crash, with a top expert predicting a further drop to $1.90.

This sudden free fall could be a sign that XRP is about to follow its usual trend in February, a month where it has historically underperformed. According to Cryptorank data, XRP has had an average return of -3.00% in February, only finishing in the green four times since 2014. The best performance came in 2022, with a 26.3% gain, but the pattern still suggests February could be a rough month for XRP.

Despite this bearish outlook, experts remain optimistic about XRP’s future, citing key support levels and potential recovery. There is also a growing buzz about XRP ETF approval in 2025, the closure of the Ripple vs SEC case, and IPO launch making its recovery still possible. 

Is Ripple (XRP) in a Bear Trap?

Renowned analyst EGRAG CRYPTO warned that XRP’s vulnerability could lead to a drop to $2.30, with $1.90 acting as the last line of defense. The 21-day Exponential Moving Average (EMA) has been identified as a crucial indicator in the current market downturn. While the outlook is bearish, the expert suggested that such a dip could create a buying opportunity for investors.

Turning down the bull theory, crypto analyst, Ali Martinez, keeps his foot down over XRP, pointing to the TD Sequential indicator, which had signaled a sell-off a week ago. Martinez’s warning underscores the risk of further declines. 

What’s Next for XRP Price?

XRP’s future price movement will depend on how it reacts to support zones. If XRP can hold above $2.30, a recovery may be possible. However, a break below $1.90 could lead to a deeper sell-off. Despite the recent 15% drop to $2.43 and rising trading volumes, XRP’s Relative Strength Index (RSI) is 34 which means a potential bullish momentum ahead.

Yet the other factors like XRP Future Open Interest dropped by 35% reflecting bear sentiment to continue. Overall the global market is in a panic state as Trump is delaying the crypto regulations and his move to fix the tariffs is creating tension on a global scale. 

Experts remain divided on XRP’s immediate future, with some predicting a potential rally back to $4, while others anticipate a more prolonged downturn as the legal case is still not resolved. Despite the sell-off, XRP is still viewed as having long-term growth potential.

Long-Term Holders sold a significant amount of BTC while Short-Term Holders bought and accumulated BTC.

History seems to be repeating itself once again. During bull cycles, we observe that Long-Term Holders lose interest in holding their previously accumulated BTC. In other words, they start selling—and this time was no different. They sold a large amount of BTC.

On the other hand, Short-Term Holders tend to be more reactive, accumulating precisely during price surges, making their decision more risky.

Historically, Long-Term Holders have been smarter than Short-Term Holders. With a lower average purchase price, they take advantage of BTC’s high prices to exit their positions.

Alphractal
$BTC

There’s understandably been a lot of panic surrounding the market volatility and sudden selloffs.

This is not the first time it has happened, and it won’t be the last either. Here are 3 pieces of advice I would like to share with you.

A thread. 🧵