XRP Drops 27% in 7 Days: What’s Behind the Fall?

Ripple’s cryptocurrency, XRP, has dropped 27% over the past week, falling from $3.07 to $2.23.

This price decrease is part of a larger downturn in the cryptocurrency market, caused by new tariffs imposed by President Trump on Canada, Mexico, and China.

These tariffs could lead to higher consumer prices, which may cause the U.S. Federal Reserve to delay cutting interest rates in 2025.

Despite this recent fall, XRP has had a remarkable run. Between November 2024 and January 2025, its price surged by 600%. This rally was driven by optimism after Trump’s election victory, hopes for more crypto-friendly policies, and progress in Ripple’s ongoing legal battles.

Even though XRP is facing a short-term decline, its future looks promising. Key regulatory decisions and the possible approval of Ripple’s exchange-traded fund (ETF) could push the price higher.

Cryptocurrencies like XRP are highly sensitive to market changes because they trade 24/7. As a result, XRP was quick to react to the new tariffs, which sent shockwaves through the market.

While XRP’s price is currently volatile, it has shown strong returns in the past, with 278% growth in 2021, a loss of 58% in 2022, 81% growth in 2023, and 234% growth in 2024.

Even with XRP’s volatility, its future is linked to how regulatory decisions play out. Investors are watching closely to see if XRP can recover from this drop or if more declines are ahead.

Meanwhile, more stable investments like the Trefis High Quality Portfolio have delivered steadier returns than cryptocurrencies.