The XRP market is currently exhibiting bearish signals as a concerning technical pattern has emerged on its weekly chart. This downturn corresponds with increasing macroeconomic pressures stemming from the anticipated implementation of US tariffs in April.
XRP’s Descending Triangle: A Potential 40% Decline
The XRP price chart has been forming a descending triangle, which is marked by a flat support level and a downward sloping resistance line, since its rally in late 2024. This pattern, however, is often interpreted as a bearish reversal indicator.
If XRP breaks below the flat support level, it might experience a decline by the height of the triangle’s formation. As of March 28, XRP was nearing a critical test of this support level, with the possibility of falling to approximately $1.32, representing a 40% decrease from current price points.
This bearish target aligns with predictions from seasoned trader Peter Brandt, who cautioned about a potential drop to as low as $1.07 driven by a head-and-shoulders pattern developing on the daily chart.
Potential Price Movements: Rebound or Breakdown?
A bullish scenario could unfold if XRP rebounds from the triangle’s support level, potentially paving the way for an advance to the upper trendline around $2.55. A decisive breakout above this resistance could negate the current bearish outlook, potentially leading to a rise towards the previous high of $3.35.
Impact of Trump Tariffs on XRP
The overall market sentiment has turned more cautious in light of President Donald Trump’s announcement regarding a 25% tariff on auto imports, effective April 3. These tariffs are expected to increase manufacturing costs in the US, which could drive up consumer prices.
According to the February 2025 US CPI report, there was already a month-over-month increase of 0.2%. St. Louis Federal Reserve President Alberto Musalem indicated that the tariffs might contribute about 1.2 percentage points to overall inflation, raising concerns about their long-term impact on the economy.
This mounting uncertainty has implications for the Federal Reserve’s interest rate decisions. The CME FedWatch Tool showed a decrease in the probability of a rate cut for June, which, if delayed, could hinder the influx of capital into speculative markets like XRP, slowing momentum amid the current risk-averse climate.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making decisions.
