Ripple’s XRP token experienced extreme volatility on Friday, October 10, tumbling to its lowest level since December before staging a partial recovery. The coin’s sharp moves underscore the impact of escalating U.S.–China trade tensions on the cryptocurrency market.
XRP tumbles amid trade war
XRP fell 63% from its yearly high to $1.3758, triggering around $700 million in liquidations as investors rushed to exit positions. The drop came amid a broader $300 billion crypto selloff, driven by concerns over new U.S. tariffs and retaliatory measures by China.
The crash confirmed analyst Peter Brandt’s bearish forecast, which highlighted the descending triangle pattern forming on XRP’s chart. Brandt had noted that if XRP closed below $2.68743, the token could fall toward $2.22163 — a target that was achieved during Friday’s selloff.
Partial rebound supported by ETF flows
After hitting its low, XRP staged a 75% bounce as investors bought the dip, buoyed by ongoing ETF inflows and anticipation of new approvals. ETFs such as XXRP, UXRP, and XRPR have seen substantial inflows since their respective launches, providing liquidity support to the token.
Technical analysis: mixed signals
XRP’s daily chart shows a peak of $3.6553 in July, followed by the rapid decline to Friday’s low. The drop invalidated several bullish formations, including the falling wedge, bullish flag, and cup-and-handle, and pushed the price below the 50-day and 100-day exponential moving averages (EMA).
On the positive side, XRP formed a giant hammer candlestick pattern, a classic indicator of a potential reversal. This suggests that while near-term volatility may persist, there is room for a rebound.
Outlook: cautious optimism
Analysts expect XRP to remain volatile as the U.S.–China trade war unfolds. If support holds and ETF inflows continue, the token could retest resistance near $2.70. However, broader bearish pressures may resume afterward, keeping the medium-term downtrend intact.
