By Chris Hollingworth 
The XRP market is currently exhibiting concerning signals, with a bearish technical pattern emerging on its weekly chart in conjunction with broader macroeconomic pressures related to anticipated US tariffs in April.
Since its late 2024 rally, XRP has been consolidating within a potential descending triangle pattern on its weekly chart. This pattern is characterized by a horizontal support level combined with a downward-sloping resistance line. Typically, a descending triangle pattern following a strong uptrend is considered a bearish reversal signal. The pattern is usually resolved when the price breaks below the horizontal support level, potentially leading to a decline of approximately 40% based on the triangle’s maximum height.
As of March 28, XRP was approaching the support level of the triangle, suggesting a possible breakdown towards the downside target around $1.32 by April. This level aligns with veteran trader Peter Brandt’s prediction of a potential drop to as low as $1.07, citing a “textbook” head-and-shoulders pattern on the daily chart.
On the flip side, a bounce from the support level could propel the price towards the upper trendline at approximately $2.55. A clear breakout above this resistance level could negate the bearish outlook, potentially driving the price back towards the previous high of $3.35.
In the broader market context, concerns have arisen due to President Donald Trump’s planned 25% tariffs on auto imports scheduled to take effect on April 3. These tariffs are expected to lead to higher prices for US manufacturers and consumers, as indicated by the recent uptick in the February 2025 US CPI report. St. Louis Federal Reserve President Alberto Musalem estimated that these tariffs could contribute around 1.2 percentage points to inflation.
The implications of these tariffs on the market sentiment are significant, with the probability of the Federal Reserve cutting rates in June decreasing to 55.7% as of March 28. A delayed rate cut could impact the flow of capital into speculative markets, potentially slowing down the momentum for assets like XRP that typically thrive in a low-rate, risk-on environment.
It’s important to note that this article does not offer investment advice or recommendations. As with any investment decision, readers are advised to conduct their research and analysis before making any financial moves.
