XRP (XRP) endured heavy selling pressure this week, plunging to $1.60 as macroeconomic jitters, fueled by the U.S. government’s aggressive tariff escalation, weighed heavily on both traditional and crypto markets.
Technical indicators added to the bearish narrative. A well-defined head-and-shoulders pattern—typically a harbinger of downward momentum—has formed on XRP’s chart over the past few months.
According to Ali Martinez, a prominent technical analyst, XRP could revisit the $1.30 support level, a historical pivot that has held through multiple macro cycles.
Trump’s Tariff Pause Sparks Market Relief Rally
However, sentiment shifted midweek following President Trump’s announcement of a 90-day delay on tariffs for select nations. Equity and crypto markets rebounded, suggesting that investors are pricing in a more flexible trade stance from the administration.
XRP responded positively, bouncing off its 200-day moving average (200DMA)—a critical technical support often used by institutional traders to gauge trend reversals.
This raises the question: Could XRP stage an unexpected rally toward its recent $3.40 peak, marking a potential 70% rebound?
Caution Ahead: CPI Data May Influence Momentum
Despite renewed optimism, risks remain. Upcoming U.S. inflation data (CPI), due Thursday, could reveal continued pricing pressures. Combined with a resilient job market, the Federal Reserve may delay rate cuts, stalling momentum in risk-on assets like crypto.
Thus, while a technical and macro-driven rally remains on the table, Martinez’s downside scenario of $1.30 support retest cannot be ruled out.
Is This a Buying Opportunity for Long-Term Investors?
The current environment offers mixed signals, but for investors seeking long-term exposure, Dollar-Cost Averaging (DCA) may be an effective strategy. By accumulating XRP at regular intervals, investors can smooth out volatility and build positions during periods of uncertainty.
Long-term fundamentals for XRP and the broader crypto space remain solid—backed by increasing institutional adoption, regulatory clarity, and pro-crypto sentiment from both the White House and U.S. Congress.
If adoption trends continue, XRP could potentially surpass previous all-time highs before the cycle’s end.
