The crypto market is wavering, and XRP finds itself on the front lines.

After a phase of technical instability, the situation has deteriorated with the announcement of new customs taxes by Donald Trump

After a phase of technical fragility, the situation has deteriorated with the announcement of new customs duties by Donald Trump on car imports. A double blow, amplified by the decline in expectations for monetary easing from the Fed. In this uncertain climate, analysts fear a 40 % drop, which threatens to plunge XRP into a downward spiral.

Between alarming technical signals and macroeconomic tensions, the market is holding its breath.

A bearish configuration that alarms analysts

Since its rally at the end of 2024, XRP has displayed a critical technical configuration on its weekly chart. Analysts are observing the formation of a descending triangle, a pattern often interpreted as a bearish continuation signal. If the crypto fails to defend its current support, a sharp drop could ensue.

Veteran trader Peter Brandt has also sounded the alarm. He highlights the presence of a head and shoulders pattern on XRP’s daily chart.

He stated on platform X (formerly Twitter) on March 26, 2025:

“This configuration is a classic example of a trend reversal, suggesting a drop to $1.07 if the key supports do not hold.”

The technical signals are concerning:

* After a bullish rally that began in December 2024, XRP encountered resistance at $2.08, the level tested in January and February 2025.

* Despite attempts to break through this zone, selling pressure remained strong, eventually leading to a breakout of the rising support at $1.50.

* A decisive closure below this support could open the way for a continuation of the decline.

* The next relevant support to watch is at $1.32, an area that could limit the scope of the decline. However, a breakout of this level could trigger a cascade of sell orders and propel XRP towards $1.07.

Beyond the simple charts, this decline is also fueled by a broader context of investor caution. The market seems hesitant in the face of an uncertain environment where the most volatile cryptos struggle to attract new capital.

Macroeconomic tensions exacerbate panic sentiment

The technical pressure on XRP does not only come from the charts. Indeed, Donald Trump’s economic decisions add a major destabilizing element to the equation.

The American president announced 25 % taxes on car imports, a measure that will take effect on April 3. This decision, perceived as inflationary, disrupts investors’ expectations regarding the Fed’s monetary policy.

Alberto Musalem, president of the St. Louis Fed, emphasizes that these taxes could add “up to 1.2 percentage points to inflation,” making a rate cut in June less likely.

The market, which anticipated a more accommodative monetary policy just a few weeks ago, is now revising its forecasts. Moreover, the probability of a rate reduction has dropped to 55.7 %, down from 67.3 % the previous week. This situation limits capital flows towards risky assets, including cryptos.

XRP and the crypto market in general are suffering from an unfavorable macroeconomic environment, where investor caution prevails. If this trend continues, the crypto could see its bullish momentum compromised for several months.

The evolution of XRP in the coming weeks will depend on two key elements: the holding of its technical support and the upcoming announcements from the Federal Reserve. If the price breaks down, a scenario at $1.32 or even $1.07 seems plausible. Conversely, a rebound from current levels could provide fresh momentum to the asset, with a bullish target set around $2.55.

Investors will also closely monitor the impact of tariff regulations on the American economy and signals sent by the Fed. A deterioration in the economic climate could heighten caution on risky assets, thereby increasing selling pressure on XRP. Conversely, a return to a more flexible monetary policy could allow cryptos to rise again. The market is playing a tight game, where every event can shift the trend.