- XRP price chart shows a descending triangle pattern on weekly timeframe indicating potential 40% drop to $1.32.
- Technical analysis aligns with trader Peter Brandt’s forecast of possible decline to $1.07 based on head-and-shoulders pattern.
- Trump’s upcoming 25% auto import tariffs could delay Fed rate cuts and reduce capital flow to speculative crypto markets.
XRP market indicators are flashing warning signals as technical chart patterns suggest a significant bearish reversal ahead. The cryptocurrency faces potential downward pressure amid a backdrop of looming U.S. tariffs and shifting Federal Reserve policy expectations that could dampen investor enthusiasm for risk assets.
Technical Analysis Points to Significant XRP Correction
Since late 2024’s rally, XRP price action has formed a concerning technical structure on its weekly chart. The pattern reveals a descending triangle formation, characterized by a horizontal support line coupled with a downward-sloping resistance line—typically interpreted as a bearish reversal signal following an uptrend.
By March 28, XRP was testing the triangle’s critical support level, setting the stage for a potential breakdown. If this pattern completes as expected, technical analysis suggests price could fall toward $1.32 by April—representing a substantial 40% decline from current levels.
This bearish outlook is further reinforced by veteran trader Peter Brandt’s analysis. Brandt identified what he described as a “textbook” head-and-shoulders pattern forming on XRP’s daily chart, potentially driving prices to around $1.07.
However, if XRP rebounds from current support levels, the price could test the upper trendline near $2.55. A decisive break above this resistance would invalidate the bearish scenario and potentially set up a move toward the previous high of $3.35.
Macroeconomic Factors Could Amplify Crypto Weakness
The cryptocurrency market faces additional headwinds from broader economic concerns, particularly President Donald Trump‘s planned 25% tariffs on automotive imports scheduled to take effect April 3.
These tariff measures are expected to increase costs throughout supply chains, potentially accelerating inflation. The February 2025 U.S. Consumer Price Index already showed a 0.2% month-over-month increase, with tariffs likely to exacerbate price pressures.
St. Louis Federal Reserve President Alberto Musalem has estimated these tariffs could contribute approximately 1.2 percentage points to inflation—0.5 percentage points from direct effects and 0.7 percentage points from indirect impacts.
Market expectations for monetary policy have shifted accordingly. According to the CME FedWatch Tool, the probability of the Federal Reserve cutting rates to a 400-425 basis point target range in June has declined to 55.7% as of March 28, down from 67.3% a week prior.
Delayed interest rate cuts would likely reduce capital flowing into speculative markets, potentially stalling momentum for XRP and other digital assets that typically perform better in low-rate environments where investors show greater appetite for risk.
This analysis 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.
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