The XRP market is signaling caution as a bearish technical formation appears on its weekly chart, coinciding with looming macroeconomic stress from anticipated US tariffs set for April.
XRP’s Descending Triangle Suggests a 40% Decline
Following its rally in late 2024, XRP’s price chart has started to form a potential triangle on its weekly chart, featuring a flat support line alongside a declining resistance slope.
A descending triangle pattern that develops after a strong upward trend is generally recognized as a bearish reversal signal. Typically, this setup is resolved when the price dips below the flat support level, potentially sliding down by as much as the height of the triangle at its widest point.
As of March 28, XRP was approaching the triangle’s support line, indicating a possibility of a breakdown. In this scenario, the price might drop to a target of approximately $1.32 by April, representing a 40% decrease from current levels.
This target aligns with predictions from experienced trader Peter Brandt, who cautioned about a potential fall to around $1.07 due to a "textbook" head-and-shoulders formation visible on the daily chart.
On the other hand, if the price bounces off the triangle’s support, it could rise towards the upper trendline, estimated at around $2.55. A decisive breakout above this resistance could negate the bearish patterns entirely, possibly driving the price towards its previous peak of $3.35.
Tariffs Could Intensify XRP Sell-Off
Meanwhile, the overall market is adopting a more cautious stance in reaction to President Trump’s 25% tariffs on automotive imports scheduled to take effect on April 3.
These tariffs are anticipated to raise costs for US manufacturers and consumers. The February CPI report for the US already showed a modest increase of 0.2% month-over-month.
St. Louis Federal Reserve President Alberto Musalem has projected that these tariffs could add roughly 1.2 percentage points to inflation, with about 0.5 percentage points directly related and 0.7 percentage points resulting from indirect effects.
As per the CME FedWatch Tool, the likelihood of the Federal Reserve lowering rates to a target range of 400–425 basis points by June has decreased to 55.7% as of March 28, down from 67.3% the previous week and 58.4% just one day prior.
A postponed rate cut could limit capital inflow into speculative markets, impeding momentum for XRP and other digital assets that benefit from a low-rate, risk-appetite climate.
This article does not constitute investment advice or recommendations. Every investment carries risk, and readers should perform their own analysis before making decisions.