XRP's price declined significantly on April 7, coinciding with a broader sell-off in the cryptocurrency market and ongoing tensions due to US trade tariffs. Analysts noted that XRP futures liquidations reached nearly $60 million within 24 hours, while overall enthusiasm among derivatives traders appeared to diminish, negatively impacting the price. President Trump's announcement of tariffs targeting countries like China and the EU has raised concerns about potential trade wars, leading to fears of decreased demand for XRP's use case. Furthermore, the derivatives market's bearish sentiment was evidenced by a drop in open interest to $2.87 billion, down from its peak of $7.8 billion earlier in the year. Negative funding rates in XRP perpetual futures further indicate a lack of buying interest, compounding the downward pressure on its price. Similar liquidations were noted in early February when XRP fell by 40%.

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