Panic Selling Hits XRP — But Is This the Perfect Setup for a Surprise Rally?
XRP
We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
XRP (XRP) was rocked by panic selling earlier this week, the price dropping to as low as $1.60 as aggressive new US tariffs roiled global markets.
The fact that XRP having formed an ominous head-and-shoulders pattern in recent months only added to the feeling of angst amongst XRP holders.
Respected technical analyst Ali Martinez forecast with a chart on X that XRP could soon drop back to the long-term $1.30 resistance area.
However, with Trump announcing a 90-day pause on the implementation of new tariffs on some countries on Wednesday and the crypto market subsequently experiencing a major bounce, could this be the perfect set-up for a surprise rally?
XRP – A Surprise Rally Back to Above $3.0 On the Cards?
XRP’s latest bounce, which comes in tandem with a major jump in other major crypto prices and the stock market, could signal a local low.
Whilst Trump didn’t reduce tariffs on China, his move on Wednesday to delay tariffs on many other countries signals a willingness to negotiate rather than plough ahead in crashing global trade.
That opens room for sentiment to continue to improve in the days and even weeks ahead.
With XRP having also found decent support at its 200DMA, that’s another sign the bulls haven’t fully lost control of this market yet.
A 70% rally back to early 2025 highs in the $3.40 area are certainly on the cards – a 70% rally is nothing compared to the near 5x rally in late 2024.
That said, macro could remain a near-term headwind to the market. US CPI inflation data is out on Thursday and is likely to point to persistent sticky price increases.
This, plus the strong labor market, makes it harder for the Fed to step in to support growth, which is already showing signs of slowing, and is likely to deteriorate amid tariffs and DOGE-related austerity this year.
Even if trade war concerns have peaked (a big if), signs of a worsening economy and a Fed that is reluctant to help out could easily result in a further deterioration of risk appetite.
So Ali’s prediction for a drop back to $1.30 could still happen sooner or later.
Good Time to Buy XRP?
With XRP risks tilted to the downside in the near-term, does this mean now is a bad time to buy XRP?
Well, not exactly. In crypto, it’s impossible to know for sure where the market is headed. Indeed, whilst many might expect further downside, the market could surprise us all and the bottom could already be in.
A good strategy for investors to follow is to dollar-cost-average (DCA) into coins they want to gain exposure to over time.
This involves buying a coin no matter the price at regular intervals. It ensures that whilst they buy the highs, they also buy the lows, and secure a solid entry price over time.
Macro uncertainties may remain high in 2025, offering investors a good opportunity to secure XRP at favorable prices.
But looking further into the future, the outlook for the broader crypto market remains very strong thanks to efforts from the pro-crypto Trump administration and US Congress to promote growth in the industry.
Major altcoins like XRP are highly likely to end Trump’s term substantially higher than the current all-time highs.
- How Tether Co-Founder William Quigley Views Crypto Regulations in Trump’s Second Term
- Trump Appoints PayPal Veteran David Sacks as ‘White House AI and Crypto Czar’
- Expert Makes Bold Claim: XRP’s Future Price Is Already Locked In
- Sui Reveals Virtual Mastercard with xMoney and xPortal, Announces Physical Card
- Bitcoin Price Breakdown Alert – $78,000 Incoming as Head & Shoulders Pattern Confirmed
Best Bitcoin & Crypto Wallet
More Articles
in numbers
