XRP Risks 10% Drop As Trump Threatens High Tariff Rates

XRP (XRP) is facing a 10% decline risk owing to a mix of fundamental and technical factors.

Rising Wedge Ups XRP Selloff Prospects

XRP is flashing a classic bearish technical signal on its 4-hour chart, a rising wedge pattern, hinting at a potential price correction.

The pattern is defined by converging trendlines that slope upward, often preceding sharp breakdowns once the price breaches the lower support. As of July 8, XRP trades near $2.28, hovering just above both the 50-day and 200-day exponential moving averages.

XRP could decline toward the $2.05 level, its previous support zone, marking a roughly 10% drop if the wedge breaks down. This scenario aligns with the earlier breakdown seen on June 22, where XRP fell sharply after failing to hold the lower wedge boundary.

Adding to the bearish setup, RSI hovers near neutral, leaving room for downside momentum. Unless bulls push for a breakout above $2.35, the risk-reward balance tilts bearish in the short term.

Trump’s Rekindling Tariff War May Fuel XRP Dump

US President Donald Trump has sent a fresh wave of market jitters by warning of 25% tariffs on imports from Japan and South Korea (triggered Aug. 1), with additional 25–40% duties possible for other nations, raising alarm over global trade uncertainty.

These aggressive “reciprocal” measures disrupt established trade ties, even with long-standing allies.

Markets have already reacted: US equities dipped nearly 1%, safe‑haven yields rose, the US dollar strengthened, and cryptocurrencies, including Bitcoin (BTC) and XRP, trended lower.

In particular, crypto markets are experiencing a short-term pullback, with analysts citing macro risk as the trigger.

Heightened geopolitical and trade volatility could further weaken investor appetite for risk assets, accelerating the potential wedge breakdown toward the $2.05 support zone.

On the weekly chart, XRP/USD is attempting to break above what appears to be a descending triangle pattern. The pair’s weekly candle formed a bullish wick around $2.35, only to face rejection afterward, indicating that a bias conflict exists near the level.

That is similar to bullish rejections witnessed in January, February, and May. Mirroring this reaction to the triangle’s upper trendline could mean a decline toward $1.92 by August.