XRP Surges 13% on Trump's Tariff Pause, ETF Launch

XRP, the cryptocurrency, experienced a significant surge of 13% in its price, trading above the $2 mark. This rally was triggered by President Donald Trump's announcement of a 90-day pause on all reciprocal tariffs, with the exception of China, which faced an additional 125% hike in response to their counter-tariffs against the US. This development provided a positive macroeconomic backdrop for the cryptocurrency market.

Adding to the positive sentiment, the launch of the XXRP ETF on the New York Stock Exchange (NYSE) Arca further boosted XRP's price. The 2x leveraged ETF, designed to amplify XRP’s daily returns, debuted amidst heightened volatility, with XRP trading at around $1.71 after a 7.4% drop in 24 hours. Despite the volatility, the XXRP ETF attracted $5 million in first-day volume, a commendable achievement given the ongoing tumult in crypto and other global markets.

However, despite these positive developments, XRP's charts indicate a potential downside risk. Since December 2024, XRP's price has been forming a descending triangle pattern on its daily chart, characterized by a flat support level mixed with a downward-sloping resistance line. This pattern is seen as a bearish reversal indicator, suggesting that the price could fall by as much as the triangle’s maximum height once it breaks below the support level.

The price dropped below the triangle’s support line at $2 on April 6, confirming a potential breakdown move. In this case, the price may fall toward the downside target at around $1.20 by the end of April, down 33% from current price levels. This bearish outlook is echoed by trader CasiTrade, who predicted that XRP could drop as low as $1.55 due to a “textbook” Elliott Wave Theory analysis. CasiTrade identified $1.81 as a critical level to break, and if the price loses that level, it would confirm a deeper move. The next level to watch would be $1.71, where the price would pause temporarily before the “projected final low” at $1.55.

Veteran trader Peter Brandt also shared a bearish outlook, predicting that XRP's price could decline to $1.07 due to a “textbook” head-and-shoulders pattern forming on the daily chart. Despite the launch of the XXRP ETF, XRP’s price remains precarious due to a mix of market dynamics and escalating trade wars. The reciprocal tariffs announced by President Trump take center stage this week, threatening further volatility across crypto markets.