- XRP dropped 2.5% to below $3 as tariffs on India and Brazil fueled broader market volatility.
- Institutional ETF inflows remain strong, suggesting the dip may be temporary.
- A favorable SEC lawsuit outcome could provide the catalyst for a breakout above $3.
Ripple’s XRP dipped 2.5% on Wednesday, falling under the $3 mark as broader markets reeled from renewed trade tensions. The decline follows a three-month rally that delivered strong returns to holders, but recent volatility sparked by tariffs has stalled the momentum.
Trade War Impact Weighs on Risk Assets
Market pressure intensified after President Trump announced 25% tariffs on India and 50% tariffs on Brazil. The Dow Jones has since shed nearly 600 points, the Nasdaq Composite is down 225 points, and the S&P 500 has lost roughly 85 points. Crypto markets have mirrored this risk-off sentiment, with XRP slipping back into a range-bound pattern.
Outlook for a Rebound Above $3
Analysts note that the probability of a prolonged downturn below $3 is low, given the pattern of rapid market recoveries throughout 2025. Institutional inflows into Bitcoin, Ethereum, and XRP ETFs remain strong, underpinning overall bullish sentiment. Many see the recent weakness as a policy-driven setback rather than a shift in fundamentals.
Key Catalysts to Watch
The outcome of the Ripple vs. SEC lawsuit looms large for XRP’s next major move. A favorable ruling could be the spark that drives the token decisively back above $3 and into fresh territory. For now, market watchers suggest accumulating on dips below $3, as institutional optimism has yet to fully translate into retail buying momentum.
