According to Cointelegraph, the XRP market is currently experiencing warning signals as a bearish technical pattern emerges on its weekly chart. This development coincides with macroeconomic pressures stemming from anticipated U.S. tariffs set to take effect in April. The XRP price chart has been forming a descending triangle pattern since its rally in late 2024. This pattern is characterized by a flat support level combined with a downward-sloping resistance line, often seen as a bearish reversal indicator. Typically, this setup resolves when the price breaks below the flat support level, potentially leading to a decline equivalent to the triangle's maximum height.
As of March 28, XRP was testing the triangle's support, indicating a possible breakdown move. Should this occur, the price could fall to around $1.32 by April, representing a 40% drop from current levels. This descending triangle target aligns with predictions from veteran trader Peter Brandt, who has warned of a potential decline to as low as $1.07 due to a "textbook" head-and-shoulders pattern forming on the daily chart. Conversely, a rebound from the triangle's support level could push the price toward its upper trendline at approximately $2.55. A breakout above this resistance could invalidate the bearish structures, potentially driving the price to the previous high of $3.35.
In the broader market context, caution is increasing in response to U.S. President Donald Trump's 25% tariffs on auto imports, scheduled to be implemented on April 3. These tariffs are expected to lead to higher prices for U.S. manufacturers and consumers. The February 2025 U.S. Consumer Price Index (CPI) report already indicated a 0.2% month-over-month increase. St. Louis Federal Reserve President Alberto Musalem has estimated that these tariffs could add approximately 1.2 percentage points to inflation, with 0.5 percentage points from direct effects and 0.7 percentage points from indirect effects.
The CME FedWatch Tool shows that the probability of the Federal Reserve cutting rates to a target range of 400–425 basis points in June has decreased to 55.7% as of March 28, down from 67.3% a week earlier and 58.4% just one day ago. A delayed rate cut would likely reduce the flow of capital into speculative markets, potentially stalling momentum for XRP and other digital assets that thrive in a low-rate, risk-on environment. This article 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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