Is XRP About to Collapse? Traders Prepare for a Sharp Decline

The cryptocurrency market is fluctuating, and XRP finds itself on the front lines. After a period of technical instability, the situation worsened with Donald Trump's announcement of new tariffs on imported cars. A double blow, amplified by falling expectations of monetary easing from the Fed. In this context of uncertainty, analysts are concerned about a 40% drop, threatening to push XRP into a downward spiral. Amid alarming technical signals and macroeconomic tensions, the market holds its breath. The discount configuration raises concerns among analysts. Since the price increase at the end of 2024, XRP has shown an important technical configuration on the weekly chart. Analysts are observing the formation of a descending triangle, a pattern often understood as a signal for continued bearishness. If the cryptocurrency fails to hold the current support level, a sharp decline could occur. Veteran trader Peter Brandt has also sounded the alarm. He emphasized the presence of a head and shoulders pattern on the daily chart of XRP. He declared on the X platform on March 26, 2025: This configuration is a typical example of a trend reversal, indicating that the price could fall to $1.07 if the key support levels do not hold. Concerning technical signals: The formation of a descending triangle, a pattern known to predict a sharp decline; The key support level at $1.32, if broken, could trigger a drop to $1.07; The emergence of the head and shoulders pattern identified by Peter Brandt will reinforce the bearish scenario; Low buying volume hinders the reversal of the bullish trend. In addition to simple charts, this fall is also driven by a more cautious investor sentiment. The market seems hesitant in an uncertain environment where the most volatile cryptocurrencies are struggling to attract new capital. Macroeconomic tensions exacerbate panic psychology. The technical pressure on XRP does not just come from the charts. Indeed, the economic decisions of Donald Trump have added a significant destabilizing factor to the equation. The President of the United States has announced a 25% tax on imported cars, a measure that will take effect on April 3. This decision, which is seen as inflationary, disrupts investors' expectations regarding the Fed's monetary policy. Alberto Musalem, the chairman of St. Louis Fed, emphasized that these taxes could increase "up to 1.2 percentage points for inflation," making the possibility of a rate cut in June less likely. The market, which had predicted a more accommodative monetary policy just a few weeks ago, is now adjusting its forecasts. Moreover, the likelihood of a rate cut has dropped to 55.7%, down from 67.3% last week. This situation limits the flow of capital into risk assets, including cryptocurrencies. XRP and the cryptocurrency market in general are being affected by an unfavorable macroeconomic environment, where investor caution prevails. If this trend continues, cryptocurrencies may witness a fall in price momentum over the coming months. The development of XRP in the coming weeks will depend on two main factors: the maintenance of technical support and upcoming announcements from the Federal Reserve. If the price falls, a scenario at $1.32 or even $1.07 seems reasonable. Conversely, a recovery from the current level could provide new momentum for the asset, with the price increase target set at around $2.55. Investors will also closely monitor the impact of tariff regulations on the US economy and the signals given by the Fed. A decline in the economic situation may increase caution towards risk assets, thereby increasing selling pressure on XRP. Conversely, a return to a more flexible monetary policy could allow cryptocurrencies to rebound. The market is playing a tight game, where every event can change the trend.