The crypto market is facing tough times, with XRP in the spotlight due to the threat of significant price decline.
A Bearish Configuration on XRP Chart
Following its rally at the end of 2024, XRP is showing a critical technical setup. Analysts note the formation of a descending triangle, often seen as a signal for continued decline. If the cryptocurrency fails to defend its current support, a sharp price drop may occur.
Macroeconomic Tensions Heighten Panic
The technical pressure on XRP is compounded by Donald Trump's economic decisions which add a destabilizing element. The new 25% taxes on automotive imports, effective April 3, are seen as inflationary, disrupting expectations for monetary easing by the Fed. Alberto Musalem, President of the St. Louis Fed, emphasizes these tariffs could add up to 1.2 percentage points to inflation, making a rate cut in June less likely. These factors are decreasing the prospects for investment in risky assets, including cryptocurrencies.
Impact on XRP's Future
The future of XRP hinges on maintaining technical supports and Fed announcements. If the price breaks down, scenarios with levels at $1.32 or even $1.07 are possible, whereas a rebound from current levels could give the asset fresh momentum to rise to $2.55. Investors will closely monitor the impact of tariff regulations on the US economy and Fed signals.
The unfolding situation in the crypto market will show the future direction of XRP amid an unstable economic environment.
