XRP Price Forecast Strengthens as Tariff Cut Improves Market Sentiment
The price of XRP has been holding steady around $2.43 following a major geopolitical development: U.S. President Donald Trump’s decision to reduce tariffs on Chinese imports by approximately 10 percentage points. This policy shift, emerging from recent negotiations with China’s President Xi Jinping, has sparked renewed optimism in global markets. The move is being interpreted as a signal of easing trade tensions, which has already led to a surge in equities, commodities, and potentially paves the way for a resurgence in key cryptocurrencies like XRP.
Currently, XRP has posted an 8% gain over the past week, although it experienced a minor 1% daily decline. Despite short-term fluctuations, the token is consolidating within a narrow range between $2.35 and $2.55. Immediate support lies at $2.30, while resistance is forming in the $2.70 to $2.80 range. Technically, XRP is hovering around its 100-day simple moving average, which often acts as a pivot zone for future price moves.
The broader macroeconomic landscape appears to be aligning favorably for digital assets. The Federal Reserve’s recent rate cuts, combined with a more accommodative trade environment, are creating a potentially supportive backdrop for risk-on assets. Investors are increasingly assessing whether these factors can catalyze a new wave of capital inflows into altcoins, especially large-cap tokens like XRP that offer tangible utility — particularly in the cross-border payments sector.
If XRP manages to break decisively above the $2.80 resistance level, it could confirm a bullish continuation pattern. In that scenario, upward price targets between $3.00 and $3.20 become realistic. This projection is supported by several bullish signals: a consistent rise in cross-border transaction volumes, steady whale accumulation near current price levels, and a weakening U.S. dollar that could spur further investment into non-sovereign digital assets.
On-chain metrics also reinforce the notion of growing momentum. Long-term holders are beginning to re-accumulate, indicating confidence in XRP’s long-term potential. Simultaneously, technical indicators show a slow but steady increase in buying pressure. If this trend continues, especially alongside increasing market liquidity, XRP may be poised for a breakout in the coming sessions.
However, the bullish outlook is not without risks. Any reversal in trade optimism or resurgence of geopolitical tensions could rapidly undermine investor sentiment. In such a case, XRP would need to defend its $2.30–$2.35 support zone to maintain its medium-term structure. A decisive drop below that could open the door to a deeper correction, potentially dragging the price down to the $2.10–$2.20 range.
Other potential headwinds include regulatory uncertainty, declining interest in crypto ETFs, and broader macroeconomic volatility. Additionally, thin weekend trading volumes could amplify short-term price swings, increasing overall market volatility and possibly triggering stop-loss orders on leveraged positions.
Given the current technical and macro setup, the next few trading sessions will be critical. A high-volume close above $2.70 would likely attract new buyers and reinforce the bullish case, while a failure to hold above $2.30 would shift attention toward lower support zones and cautionary outlooks.
Beyond price action, XRP’s fundamental use case continues to gain traction. As more financial institutions explore blockchain-based solutions for cross-border settlements, XRP stands to benefit from its established infrastructure and partnerships. If institutional adoption accelerates, it could serve as a long-term growth driver for the token, independent of short-term market sentiment.
Moreover, XRP’s positioning as a utility-focused asset differentiates it from other speculative altcoins. While many tokens rely on hype or unproven ecosystems, XRP’s real-world applications in payments and liquidity provisioning offer a more grounded investment thesis. This could make it more attractive to conservative crypto investors, especially in uncertain economic times.
Another factor to monitor is the behavior of large wallet holders. Whales accumulating XRP during this consolidation phase suggest confidence in a potential breakout. Their activity often precedes significant price movements, as these players have the capital to influence market direction and sentiment.
Additionally, a possible launch of an XRP-based ETF in the coming months could act as a major catalyst. If approved, it would provide easier access for institutional investors and potentially lead to a surge in demand. This aligns with broader market trends showing increasing interest in crypto financial products.
The correlation between XRP and broader financial markets is also worth noting. As traditional markets stabilize and risk appetite grows, capital could flow back into cryptocurrencies. XRP, as a relatively established and liquid asset, is well-positioned to benefit from this trend.
In summary, XRP is currently in a consolidation phase, trading within a defined technical range. The recent tariff cuts and dovish Fed policy are creating a supportive macro backdrop. If XRP can maintain its footing above $2.30 and break through resistance at $2.80, a move toward the $3.00–$3.20 range is plausible. However, traders should remain vigilant about potential downside risks, including market volatility and regulatory developments.
Looking ahead, investors should keep an eye on key technical levels, macroeconomic indicators, and institutional interest. If current trends continue, XRP could be on the cusp of a bullish breakout, driven by both fundamental utility and improving market sentiment.