Why is XRP price up today?

XRP is up more than 7% over the last 24 hours, bouncing from a low of $1.79 on the day before, rising as much as 55% to a high of $2.78 on Feb. 4, according to data from Cointelegraph Markets Pro and TradingView. Let’s look at the drivers behind XRP’s rebound today.XRP price boosted by Trump’s tariffs pause XRP’s rally on Feb. 4 mirrors similar moves across the broader crypto market after US President Donald Trump agreed to put a temporary hold on proposed tariffs aimed at Canada and Mexico. Thing to know:President Donald Trump and Mexican President Claudia Sheinbaum agreed to immediately pause the 25% tariffs.Trump and Canadian Prime Minister Justin Trudeau have also agreed that the 25% tariffs would be paused for at least 30 days as negotiations continue between the two countries. “Canada is implementing our $1.3 billion border plan” and will ensure “enhanced coordination with our American partners” to protect the border, Trudeau said in a Feb. 3 post on X.The pause on tariffs typically signals a period of economic stability or at least a reduction in trade uncertainties, which can be a boon for risk-on assets like cryptocurrencies. Cryptocurrencies responded with sharp recoveries, with Bitcoin rising to trade above $100,000 before retracing the current level above $98,000.Notably, XRP’s price jumped approximately 50% from its Feb. 3 lows.XRP price needs to reclaim key support level Market participants expect the pair to resume its bullish momentum after rebounding from the year-to-date low of $1.76. However, there are indications that the latest rebound might have been a been a bull trap. XRP’s latest recovery from Feb. 3 lows saw it rise to close the day above the 50-day simple moving average (SMA) at $2.62.Bulls are struggling to flip this level into support, suggesting weakening momentum for the bulls. The relative strength index (RSI) likewise shows a decline from 49 to 38 over the last two days, indicating increasing bearish momentum.If the sell-side pressure continues, XRP price may retrace lower toward the major support at $2.26 and later toward $2.00, embraced by the 100-day SMA.XRP investors have realized nearly $2 billion in profits in the past three days — one of the highest in its history, according to data from Santiment.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.