XRP has experienced a downturn this week, declining for four consecutive days and hitting its lowest level since March 11.
Ripple’s XRP, along with many other altcoins, has seen significant drops amid rising concerns regarding the U.S. economy and recent reciprocal tariffs imposed by President Donald Trump on April 2.
Recent data released indicates a rise in inflation for February, coupled with a slowdown in consumer spending. This report follows a previous announcement from the Conference Board highlighting a decrease in consumer confidence for March, prompting warnings from leading economists about increasing recession risks.
These economic uncertainties have triggered a sell-off in both stock and crypto markets, with major indices including the Dow Jones, Nasdaq 100, and S&P 500 each plunging by over 2%.
Such market conditions have impeded XRP’s price growth, even in the wake of favorable news. Ripple’s latest partnership with Chipper Cash, an influential fintech firm in Africa, allows the latter to utilize Ripple’s technology for transaction processing.
Additionally, Ripple secured a money transmitter license in New York in January, and this week it also received a license from the United Arab Emirates, expanding its operational scope.
Following the SEC’s recent decision to drop its lawsuit against Ripple Labs, company CEO Brad Garlinghouse noted an increase in collaboration opportunities with American businesses in an interview.
Ripple aims to revolutionize traditional banking systems, challenging the SWIFT model that handles over $150 trillion in transactions annually by providing a more efficient and cost-effective solution for global financial connectivity.
XRP Price Technical Analysis
The daily chart reveals a significant decline in XRP’s price over the past few months, decreasing from a peak of $3.40 in January to its current value of $2.31.
Technical indicators suggest the potential formation of a head and shoulders pattern, with a neckline at $1.96. The left shoulder is at $3, the head at $3.40, indicating potential risk as this pattern is known to be one of the more precarious signals in technical analysis.
Moreover, XRP has formed a symmetrical triangle pattern, signaling that a breach below the critical support level at $1.9515 could lead to further declines, potentially reaching $1.
This support level aligns with the 50% Fibonacci Retracement, coinciding with the head and shoulders neckline. A drop to $1 would represent a substantial 53% decrease from its current standing.
