XRP Surges 13% Following Tariff Pause and XXRP ETF Launch: But is a Correction Imminent?

XRP experienced a significant 13% price surge, trading above $2, following President Trump’s announcement of a 90-day pause on reciprocal tariffs (excluding China). This rally coincided with the launch of the XXRP ETF on the NYSE Arca, fueling optimism within the crypto community. However, technical analysis suggests a potential downturn could be on the horizon.

Descending Triangle Pattern: A Warning Sign?

Since December 2024, XRP’s daily chart has shown a concerning descending triangle pattern, formed by a flat support level and a downward-sloping resistance line. This pattern, often occurring after strong uptrends, is typically interpreted as a bearish reversal signal. The price breach of the support line at $2 on April 6th confirms this potential breakdown, suggesting a possible drop towards $1.20 by month’s end – a 33% decrease from current levels.

This bearish forecast aligns with predictions from traders like CasiTrade, who anticipates a drop to $1.55 based on Elliott Wave Theory, and Peter Brandt, who points to a head-and-shoulders pattern indicating a potential decline to $1.07.

Can the XXRP ETF Counteract the Bearish Trend?

Despite the XXRP ETF’s April 8th launch on NYSE Arca and its impressive first-day volume of $5 million (placing it in the top 5% of new ETF launches), the ongoing market volatility and escalating trade tensions pose significant challenges. The ETF’s performance, while positive, might not be enough to offset the potentially bearish technical indicators.

The interplay between short-term gains driven by positive news and longer-term technical indicators paints a complex picture for XRP’s future. The coming weeks will be crucial in determining whether the XXRP ETF can successfully bolster XRP’s price or if the predicted correction will materialize.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Always conduct thorough research before making any investment decisions.