XRP, the native token of Ripple Labs, is facing renewed selling pressure, with its price declining for four consecutive days, dropping to its lowest level since March 11. The move mirrors broader weakness across altcoins as macroeconomic concerns mount and investor sentiment sours.
As of Saturday, XRP is trading around $2.31, nearly 32% below its 2025 peak of $3.40 reached in January.
Economic Fears and Tariff Tensions Weigh on Markets
The sell-off comes amid a wave of uncertainty fueled by the latest U.S. economic data and political developments. On Friday, new figures showed rising inflation in February, while consumer spending softened, intensifying recession concerns. Earlier in the week, the Conference Board’s drop in consumer confidence prompted Moody’s economist Mark Zandi to warn that the U.S. faces increasing odds of an economic downturn.
Adding to the pressure, President Donald Trump’s looming April 2 tariff policies—billed as “Liberation Day” tariffs—have raised fears of retaliation and global trade disruption. The broader risk-off sentiment has hit both equity and crypto markets, with major U.S. indices falling over 2% and altcoins tumbling in tandem.
Bullish Fundamentals Take a Backseat
Despite the price slump, Ripple has had a string of positive developments:
- A new partnership with African fintech Chipper Cash to power international payments.
- Regulatory victories, including money transmitter licenses in New York and the United Arab Emirates.
- The end of the SEC’s lawsuit against Ripple Labs, removing a major legal overhang and opening the door to new partnerships.
In an interview with Fox Business, Ripple CEO Brad Garlinghouse noted a surge in interest from U.S. firms looking to collaborate with Ripple following these legal wins.
The company’s long-term vision remains focused on disrupting the $150 trillion global remittance industry, offering a blockchain-powered alternative to legacy infrastructure like SWIFT.
Technical Breakdown: $1 in Sight?
The XRP daily chart paints a worrisome picture. The token has formed a head and shoulders (H&S) pattern, a classic bearish setup, with the neckline sitting at $1.96. If that level is broken, it could trigger a steep decline toward $1, representing a 53% drop from current levels.
Prominent trader Peter Brandt also flagged the H&S structure, warning that unless XRP breaks above $3.00, the formation implies a potential slide to $1.07.
Adding to the bearish case, XRP has formed a symmetrical triangle, with price action narrowing toward a critical decision point. The confluence of the H&S neckline and the 50% Fibonacci retracement level at $1.9515 makes this a crucial zone for bulls to defend.
Outlook
While Ripple’s fundamentals remain strong, technical patterns and macroeconomic headwinds suggest that further downside is possible. If XRP fails to hold above the $1.95 level, the path toward $1 support becomes increasingly likely.
In the current environment, investors should closely watch for a decisive break of support or a bullish reversal, with XRP’s next move likely to hinge on both market sentiment and broader economic developments.
