The XRP market is showing warning signs of potential decline as the cooling of the 2024 rally coincides with the formation of a descending triangle technical pattern.
Descending Triangle Signal
Since late 2024, the XRP weekly chart has shown a potential descending triangle pattern, which is seen as a bearish reversal indicator. Should the price fall below its support level, a 40% drop to around $1.32 by April is possible.
Impact of Trump Tariffs
President Donald Trump's planned tariffs on auto imports may exacerbate the market situation. These tariffs, set to take effect on April 3, could lead to higher prices for US manufacturers and consumers, potentially adding 1.2 percentage points to inflation, according to St. Louis Federal Reserve President Alberto Musalem.
Analysts' Opinions and Possible Scenarios
Veteran trader Peter Brandt predicts a drop to as low as $1.07. Conversely, a rebound could push prices to $2.55 if the triangle's support level holds.
The XRP market is under strain from both technical and macroeconomic factors. Market participants are focused on tariff developments and potential Federal Reserve actions.
