XRP tests $2 as investors flee riskier assets

On April 2, the cryptocurrency market took a sharp downturn following comments from US President Donald Trump on new tariffs to be enacted. Liquidations across multiple exchanges exceeded $500 million, with XRP also feeling the impact. The token fell below the critical $2 level for the first time in a month, hitting a low of $1.98 on Binance before recovering slightly to $2.05.

Data from CoinGlass indicates that over $20 million in XRP positions were closed overnight, with around 63% of that total coming from long ones. Amidst the prevailing uncertainty, the token is losing its previous momentum. Following a strong rally at the end of 2024, the crypto’s market position is now weakening, along with diminishing interest from retail investors.

Analyst Peter Brandt cautioned that a fall below $1.90 could indicate a "bearish" trend, which might result in a further drop to $1.07.

This sell-off comes amid rising prices of gold, a key safe-haven asset, indicating that investors are pulling back from risk in response to escalating global trade tensions, as reported by CoinPedia.