This week, XRP’s price has lost traction, experiencing a decline for four straight days and hitting its lowest level since March 11.
Ripple (XRP), alongside other alternative cryptocurrencies, has faced a downturn as fears grow over the U.S. economic outlook and President Trump’s reciprocal tariffs introduced on April 2.
Data published on Friday indicated that inflation climbed in February, while consumer spending experienced a slowdown. This news followed a report from the Conference Board revealing a drop in consumer confidence for March. The decline in confidence prompted Mark Zandi, the leading economist at Moody’s, to caution about increasing recession probabilities.
These concerns have triggered instability in both stock and cryptocurrency markets. The U.S. stock market suffered a significant drop, with the major indices—Dow Jones, Nasdaq 100, and S&P 500—declining by more than 2%.
Such risks have stalled XRP’s price from rallying despite some positive developments. For instance, Ripple secured a partnership with Chipper Cash, a prominent fintech firm in Africa, which will utilize Ripple’s technology for transactions.
Additionally, Ripple obtained a money transmitter license in New York back in January and has now also received a license from the United Arab Emirates this week.
The recent resolution of the SEC’s lawsuit against Ripple Labs has also spurred further partnership opportunities. In a conversation with Fox’s Maria Bartiromo, Brad Garlinghouse stated that an increasing number of U.S. companies are eager to collaborate with Ripple.
Ripple’s mission is to transform the traditional 50-year-old SWIFT model that processes over $150 trillion in cash annually, aiming to connect banks and money transfer services on a global scale and offer them a quicker, more cost-effective solution.
XRP Price Technical Analysis
An examination of the daily chart reveals that XRP’s price has significantly declined in recent months, dropping from a high of $3.40 in January to $2.31.
The concerning aspect is that the cryptocurrency appears to have formed a head and shoulders pattern, with the neckline positioned at $1.96. The shoulders are identified at $3, while the head peaks at $3.40. This formation is known to be one of the most precarious in technical analysis.
XRP has also established a symmetrical triangle formation with two lines nearing convergence. Consequently, if the price falls below the critical support level of $1.9515, further declines could be anticipated, potentially bringing it down to $1.
This support level corresponds to the 50% Fibonacci Retracement point and serves as the neckline for the head and shoulders pattern. A drop to $1 would represent a substantial 53% decline from its present position.