XRP prices have fallen 4.08% in the past day alongside the majority of the crypto market following the US announcement of a potential 50% tariff on goods being imported from the European Union (EU). Amid this market downturn, popular market analyst CasiTrades has stated that XRP lies in danger of a further decline should a particular support level fail.
As Bitcoin prices reached a new all-time high in the past week, XRP followed suit, reaching as high as $2.45 before experiencing a price rejection driven by negative macroeconomic pressure due to the new international tariffs by the US Government.
In the day, XRP price notably declined by over 5% from $2.45 to $2.33 before finding some stability to enter a sideways movement as seen in the last few hours. According to CasiTrades, XRP’s rejection aligns with a 1:1 Fibonacci extension of the corrective C-wave pattern in the Elliott Wave Theory, signaling the possible exhaustion of the previous relief rally seen earlier in the week.
Notably, the analyst warns that XRP’s decline may lead to a retest of “major structural support” at the $2.25 – $2.26 price zone, which aligns with the Fibonacci retracement level 0.382. CasiTrades explains that Fib 0.382 has represented a key technical price level over the past six months.
Therefore, a price break below this level could trigger deeper corrections, forcing XRP’s price as low as $1.55 – $1.90, a price move that would wipe out all price gains that have been recorded since the crypto market uptrend resumed in early April. However, if the $2.25 – $2.26 support zone holds, such market resilience could trigger a new price rally to around $2.70 and beyond. Thereafter, XRP is likely to return to the local peak of the current bull run at $3.84.
At the time of writing, XRP continues to trade at $2.33 following a 1.45% decline in the past week. However, the altcoin is up by 9.77% in the past month, reflecting that the majority of new market entrants are still in profit.
In other positive news, Volatility shares launched an XRP futures exchange-traded fund (ETF) on May 22. It is a 1x fund, indicating that it would track the daily performance of XRP futures contracts with no leverage.
With a total market cap of $233.58 billion, XRP remains the 4th largest cryptocurrency and third-largest altcoin in the market.
