XRP (XRP) faced a wave of panic selling this week, plunging as low as $1.60 as global markets reeled from aggressive new U.S. tariffs.
To make matters worse, XRP’s chart has formed a bearish head-and-shoulders pattern over recent months — a setup many traders associate with significant downside potential.
According to technical analyst Ali Martinez, XRP may be headed toward a retest of the $1.30 support zone, a level that has served as a long-term pivot in the past.
But with President Trump unexpectedly announcing a 90-day delay on new tariffs for select countries on Wednesday — and markets bouncing in response — could this be setting the stage for an unexpected XRP rally?
Could XRP Shock Everyone with a Rally Toward $3.00+?
XRP’s rebound mirrors the broader relief rally across both crypto and equity markets, suggesting that sentiment may have found a short-term floor.
While tariffs on China remain, Trump’s willingness to pause further implementations for other nations hints at potential diplomatic flexibility — something investors are now pricing in as a bullish macro shift.
Combine that with XRP’s bounce from the 200-day moving average (200DMA) — a key technical support level — and bulls may not be entirely out of the fight just yet.
A recovery back to the $3.40 range, where XRP peaked earlier this year, would represent a 70% rally — modest compared to the nearly 5x explosion XRP experienced in late 2024.
However, risks still loom.
Upcoming U.S. inflation data (CPI), expected Thursday, may show persistent pricing pressure. Pair that with a resilient labor market, and the Federal Reserve may be forced to hold off on easing, despite slowing growth and trade-related headwinds.
If that happens, risk appetite across markets — including crypto — could deteriorate further.
So while optimism is rising, Ali’s bearish $1.30 call shouldn’t be ruled out just yet.
Is Now a Smart Time to Buy XRP?
With short-term risks still on the table, is now a bad time to buy XRP?
Not necessarily.
Crypto markets are notoriously unpredictable. While more downside is possible, the bottom could also already be in — a classic crypto fakeout could be in play.
That’s why many investors turn to a dollar-cost averaging (DCA) strategy. This involves buying a fixed amount of a crypto asset at regular intervals, regardless of price. Over time, this approach smooths out volatility and secures a favorable average entry.
Given the current uncertainty in 2025, DCA might be one of the smartest ways to gain exposure to XRP at potentially undervalued prices.
And looking beyond the noise, the long-term outlook for crypto remains solid — fueled by a pro-crypto stance from both President Trump and U.S. Congress, who have made regulatory clarity and innovation a top priority.
As the market matures and adoption continues, top altcoins like XRP are well-positioned to exceed previous all-time highs before the end of this cycle.
