The XRP price crash may be closer than expected as the crypto faces a combination of bearish technical indicators and worsening macroeconomic conditions. Since its rally at the end of 2024, XRP has formed a descending triangle pattern on its weekly chart—a classic signal of a bearish continuation. If key support at $1.32 breaks, analysts anticipate a plunge to $1.07.
Renowned trader Peter Brandt has also identified a head-and-shoulders pattern on XRP’s daily chart, reinforcing the bearish sentiment. With low buying volume preventing a bullish reversal, traders are increasingly worried that XRP’s current position may be unsustainable.
Bearish Signals Threaten XRP’s Stability
XRP’s price movement has been flashing warning signs over the past few weeks. Analysts point to several factors that suggest a potential XRP price crash:
- Descending Triangle Formation: This bearish pattern, forming since late 2024, suggests a likely downward breakout.
- Key Support at $1.32: A break below this level could trigger a 40% drop, taking XRP to $1.07.
- Head and Shoulders Pattern: Identified by Peter Brandt on March 26, 2025, this trend reversal signal adds to the downward momentum.
- Low Buying Volume: The lack of strong buying pressure limits XRP’s ability to reverse its current bearish trend.
If these technical signals materialize, XRP may face significant downside risks. The possibility of a sustained bearish trend is increasing, with traders closely watching for a breach of critical support levels.
Macroeconomic Uncertainty Adds Pressure to XRP
The bearish sentiment around XRP is not solely due to technical factors. Broader macroeconomic trends are also adding to investor concerns, particularly after recent policy announcements by former US President Donald Trump.
On April 3, 2025, Trump is set to impose 25% tariffs on automotive imports, a move that many experts predict will add inflationary pressures. Alberto Musalem, president of the St. Louis Fed, has warned that these tariffs could increase inflation by up to 1.2 percentage points, making a rate cut by the Federal Reserve in June far less likely.
Just a few weeks ago, markets were pricing in a 67.3% probability of a rate cut. However, this likelihood has now fallen to 55.7%, reducing the flow of capital toward risky assets like cryptocurrencies. The result is a more cautious market, where investors are reluctant to take on high-risk positions amid economic uncertainty.
XRP Faces a Challenging Path Forward
The combination of technical weakness and macroeconomic headwinds leaves XRP in a precarious position. If support at $1.32 breaks, the XRP price crash could lead to further losses, with the next target at $1.07. Conversely, if XRP manages to hold its current support, a potential rebound could push the price toward a bullish target of $2.55.
The next few weeks will be critical for XRP’s trajectory, with two key factors driving the outcome:
- Holding Key Support Levels: A failure to maintain support at $1.32 could accelerate selling pressure, while a successful defense could signal a bullish reversal.
- Federal Reserve Policy Announcements: Any indication that the Fed may resume a more accommodative monetary policy could restore confidence in riskier assets, providing a boost to XRP.
XRP’s Future Hinges on Economic and Market Dynamics
The evolving macroeconomic landscape remains a critical factor for XRP and the broader crypto market. The potential for rising inflation, coupled with tightening monetary policy, could create an environment where digital assets struggle to attract new capital.
However, a shift in the Fed’s stance or positive developments in the US economy could change the outlook. For now, traders and investors are proceeding with caution, knowing that the market’s next move could significantly impact XRP’s price trajectory.
Conclusion: Is an XRP Price Crash Inevitable?
As XRP price crash warnings grow louder, traders are bracing for volatility in the coming weeks. With critical support levels being tested and macroeconomic uncertainties weighing on sentiment, the outlook remains fragile. While a potential rebound is still possible, the downside risks cannot be ignored. Investors will need to stay vigilant and closely monitor both technical and economic developments to navigate this turbulent period.
Featured Image: Freepik
Please See Disclaimer
