- Ripple XRP faces a potential 40% decline as bearish technical patterns and macroeconomic factors, including U.S. tariffs and Federal Reserve policies, create market uncertainty.
- Ripple’s market outlook remains cautious, with analysts warning that a descending triangle breakdown could push XRP toward $1.32 unless strong support holds.
The Ripple market is teetering on the edge as technical indicators and macroeconomic factors hint at a possible 40% decline. With a descending triangle pattern forming and economic shifts like new U.S. tariffs adding uncertainty, traders are bracing for potential turbulence.
Ripple’s Bearish Case: Descending Triangle Formation
Technical analysis suggests that XRP is currently locked in a descending triangle formation—a pattern typically signaling a bearish breakdown. This structure is characterized by a flat support level and a declining resistance trendline, which often leads to sharp price drops if support fails.
Market veteran Peter Brandt has pointed out a developing head-and-shoulders pattern on the daily chart, reinforcing the bearish outlook. Should Ripple break below its current support level, analysts predict a sharp plunge toward the $1.32 mark—a staggering 40% decrease from recent trading levels.
Macroeconomic Challenges: Tariffs and Inflation
Adding to XRP’s woes, economic policies are tightening, with the U.S. government introducing a 25% tariff on auto imports starting April 3. This move is expected to increase inflation, potentially impacting speculative assets like cryptocurrencies. Federal Reserve projections also indicate a decreasing likelihood of interest rate cuts, reducing the appeal of high-risk investments like XRP.
The CME FedWatch Tool reports that the probability of a Fed rate cut has dropped to 55.7% as of March 28, signaling a shift toward a tighter monetary policy. Historically, digital assets perform better in low-interest environments, meaning XRP could face extended bearish sentiment if rate cuts are delayed.
Is There a Silver Lining?
Despite the bearish setup, XRP has a chance to rebound if it holds its crucial support level. A strong bounce could push prices toward the $2.55 resistance zone. If the market shifts to a more optimistic tone, a breakout could even propel XRP back to its previous highs near $3.35.
XRP’s price trajectory is at a crossroads. While technical indicators signal a sharp decline, external economic factors further compound the risks. Whether XRP breaks below support or stages a surprise rally will depend on market sentiment and macroeconomic shifts. Traders and investors must stay informed and prepared for potential volatility in the coming weeks.
