Umair
The XRP price has lost momentum this week, falling for four consecutive days and reaching its lowest point since March 11.
Ripple (XRP), like other altcoins, has crashed as concerns about the state of the U.S. economy and President Donald Trump’s reciprocal tariffs on April 2.
Data released on Friday showed that inflation rose in February while consumer spending slowed. This report came a few days after the Conference Board said consumer confidence dropped in March. The consumer confidence figure pushed Mark Zandi, the top economist at Moody’s, to warn that recession odds were rising.
These risks have led to panic among the stock and crypto markets. The U.S. stock market crashed, with the top three indices, Dow Jones, Nasdaq 100, and S&P 500, falling by over 2%.
These risks have prevented the XRP price from surging even after some notable bullish news. For example, Ripple entered a deal with Chipper Cash, a popular fintech company in Africa that will now use its technology to handle transactions.
Ripple also received a money transmitter license in New York in January, and this week, it received a license from the United Arab Emirates.
The recent decision by the SEC to end its lawsuit against Ripple Labs has also led to more deal-making. In an interview with Fox’s Maria Bartiromo, Brad Garlinghouse said that more American companies were willing to partner with the company.
Ripple’s goal is to disrupt the 50-year-old model by SWIFT, which handles over $150 trillion in cash each year. It aims to connect banks and money transfer companies globally and provide them with a faster and cheaper alternative.
XRP price technical analysis
The daily chart shows that the XRP price has crashed in the past few months. It peaked at $3.40 in January and has now plunged to $2.31.
The risk is that the coin has formed a head and shoulders pattern whose neckline is at $1.96. Its shoulders are at $3, while the head is at $3.40. H&S is one of the riskiest patterns in technical analysis.
XRP has also formed a symmetrical triangle pattern with two lines nearing their confluence level. Therefore, a drop below the key support at $1.9515 will point to more downside, potentially to $1.
This support is the 50% Fibonacci Retracement point and also the neckline of the H&S pattern. A drop to $1 would signify a 53% crash from the current level.
