- Panic selling has pushed XRP to new lows, but a recent market rebound and support at the 200DMA suggest a potential surprise rally.
- Despite macroeconomic uncertainties, XRP could see a 70% rally back to $3.40 if market conditions improve.
XRP has been under intense pressure this week, driven by panic selling and a broader global market downturn. The digital asset dropped to as low as $1.60 after fresh tariffs announced by the US reignited fears of an economic slowdown. This dramatic price movement came at a time when XRP had already formed a head-and-shoulders pattern, suggesting further losses might be on the horizon.
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Technical analysts like Ali Martinez have pointed to a potential drop to the $1.30 level, further fueling anxiety among XRP holders. However, a recent turn of events may be the key to a surprising rebound.
On Wednesday, former President Donald Trump announced a 90-day pause on the implementation of some new tariffs, calming the market’s fears and triggering a significant recovery in global asset prices. This shift in sentiment, coupled with a bounce in XRP from its 200-day moving average (DMA), hints that we may be witnessing a local low in the price of the asset.
Could XRP be gearing up for a surprise rally? The 70% rally that would take XRP back to the $3.40 range seems plausible given the current market dynamics. With XRP finding solid support at its 200DMA, the bullish case for a price rebound is becoming more compelling.
Despite these signs of hope, macroeconomic challenges persist. US inflation data due out Thursday is expected to show persistent price increases, potentially weighing on market sentiment. If inflation remains high, it could limit the Federal Reserve’s ability to support economic growth, further impacting investor appetite for risky assets like XRP.
However, even with these uncertainties, the outlook for the broader crypto market remains promising. Pro-crypto policies from the US government could provide a favorable environment for digital assets over the long term. For those looking to invest in XRP, this volatile period could represent an opportunity to dollar-cost-average (DCA) into the market, securing a favorable entry point despite the short-term risks.
While the immediate future of XRP remains uncertain, the possibility of a rally back to the highs of early 2025 remains very much on the table. Whether or not it will happen will depend on broader market conditions and the crypto community’s response to ongoing macroeconomic challenges.
