Key Takeaways
- Ripple launched its stablecoin RLUSD on Ripple Payments to facilitate faster cross-border transactions.
- XRP price slid 5% following Trump’s announcement of reciprocal tariffs on US imports, even as the token recorded losses of over $710 million in a two-year high.
- Analysts fear XRP could validate a Head-and-Shoulders pattern following Trump’s reciprocal tariffs kick-off on US trading partners.
The excitement that should have surrounded Ripple’s launch of its stablecoin RLUSD on Ripple Payments paled into a shadow following US President Donald Trump’s inauguration day.
The RLUSD launch came when XRP struggled to shake off a bad start to the month. The broader cryptocurrency market is bracing itself for the consequences of a trade war due to Trump’s reciprocal tariffs targeting imports from over 185 countries. Moreover, XRP has realized losses that have surged to a two-year high, exceeding $710 million.
Clients Already Using RLUSD
According to onchain data, XRP declined 5% overnight after Trump announced his “Liberation Day” tariffs affecting every international trading partner. Unfortunately, the downturn following the tariff announcement swept away some temporary gains experienced after Ripple confirmed the integration of the RLUSD stablecoin into its payment solutions. The market failed to respond positively to the RLUSD integration aimed at facilitating XRP adoption. According to Ripple Labs, several clients, including BKK Forex and iSend, were already using RLUSD to enhance their international treasury operations.
Expanding Global Partnerships
Launched in December 2024, RLUSD continues to gain prominence, and according to onchain data, it has a market capitalization of over $250 million with a $10 billion trading volume. Talking about the progress of the initiative, Senior Ripple Vice President in charge of the Stablecoin Jack McDonald stated:
“We’re seeing the market cap grow, outpacing our internal projections. RLUSD is quickly used for various applications, including as collateral in crypto and traditional finance trading markets.”
Moreover, Ripple recently announced that their stablecoin RLUSD was now live on Kraken’s cryptocurrency exchange, expanding its global partnerships.
Conclusion
According to analysts, XRP faces severe selling pressure after sliding 5% and triggering futures liquidations of over $17.26 million. The liquidations comprised at least $10.67 million from long positions and $6.59 million from short positions. As the token grapples with the fallout following Trump’s tariff announcement, analysts suggest a $1/96 support level. Any breakdown below this point could quickly validate a Head-and-Shoulders (H&S) pattern, potentially dragging XRP lower toward a support level of $1.35.
Frequently Asked Questions (FAQs)
What are tariffs?
Tariffs are levied on imports or a specified category of products. They are designed to protect local manufacturers and products by making them more competitive and providing a price advantage over similar imported goods.
What is the difference between taxes and tariffs?
While taxes and tariffs generate government revenue, taxes are paid at the time of purchase, while tariffs are prepaid at the port of entry. Importers pay tariffs, while taxes are imposed on businesses and individual taxpayers.
Are tariffs good or bad?
While some economists argue that tariffs are required to protect domestic industries, others believe they are harmful as they drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
How will US President Donald Trump’s tariff plan affect the crypto market?
Trump’s tariff plans may fuel inflation and slow growth, affecting Bitcoin and crypto. Short-term volatility could give way to Bitcoin’s rise as a hedge. Even before the tariffs are fully implemented, crypto prices have spiraled downwards.
