XRP (XRP) price is up 13% on the day, trading above the $2 level after President Donald Trump announced a 90-day pause on all reciprocal tariffs, except for China, which saw an additional 125% hike in response to their counter-tariffs against the US.

XRP’s rally comes on the heels of additional positive news and the XXRP ETF being launched on the New York Stock Exchange (NYSE) Arca. 

Despite the positive macroeconomic and TradFi crypto adoption news, XRP charts still caution that a sharp price downside could lie ahead.

Descending triangle pattern hints at a 33% drop

Since December 2024, XRP price has been forming a potential triangle pattern on its daily chart, characterized by a flat support level mixed with a downward-sloping resistance line.

A descending triangle chart pattern that forms after a strong uptrend is seen as a bearish reversal indicator. As a rule, the setup resolves when the price breaks below the flat support level and falls by as much as the triangle’s maximum height.

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.

XRP/USD daily chart. Source: Cointelegraph/TradingView

XRP’s descending triangle target echoes trader CasiTrade’s prediction that the altcoin could drop as low as $1.55 due to a “textbook” Elliott Wave Theory analysis.

“Right now, $1.81 is a critical level to break in this plan,” the trader said in an April 8 post on X, adding that if the price loses that level, it would confirm a deeper move.

According to CasiTrades, the next level to watch would be $1.71, where the price would pause temporarily before the “projected final low” at $1.55.

“Key zone: $1.55 is the golden retracement and the likely end to this entire corrective W2.”

XRP/USD 15-minute chart. Source: CasiTrades

The bearish outlook mirrored veteran trader Peter Brandt’s prediction that XRP price could decline to $1.07 due to a “textbook” head-and-shoulders pattern forming on the daily chart.
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Could XXRP ETF launch avert an XRP price sell-off?

Despite the launch of the XXRP ETF on NYSE Arca on April 8, 2025, XRP’s price remains precarious due to a mix of market dynamics and escalating trade wars. 

The 2x leveraged ETF, designed to amplify XRP’s daily returns, debuted amid heightened volatility, with XRP trading at around $1.71 after a 7.4% drop in 24 hours. 

The XXRP ETF attracted $5 million in first-day volume, in what Bloomberg ETF analyst Eric Balchunas termed a commendable achievement considering the ongoing tumult in crypto and other global markets. 

Although this was 200x less than the volume posted by BlackRock’s IBIT ETF on day one, this performance puts XXRP in the top 5% of new ETF launches.

Source: Eric Balchunas

Beyond the XXRP ETF, macroeconomic factors, notably US President Donald Trump’s reciprocal tariffs, take center stage this week, threatening further volatility across crypto markets. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.