XRP price tanked on Monday as the cryptocurrency sell-off gained steam, and technicals point to a crash to $1 and below.
Ripple (XRP), the cross-border-focused token, dropped to a low of $1.6185, its lowest level since November last year.
The coin crashed because of the ongoing cryptocurrency crash that was triggered by Donald Trump’s Liberation Day tariff speech. That speech and the retaliations from China have pushed more analysts to predict that the US will have a recession this year.
Goldman Sachs analysts raised their recession odds to 45%, up from last week’s 35%. Similarly, experts from JPMorgan, Wells Fargo, and Citi have warned of a sustained economic slowdown unless Trump changes course on tariffs.
On the positive side, a recession could act as a bullish catalyst for cryptocurrencies and other risk assets by pushing the Federal Reserve to cut interest rates.
Meanwhile, some well-known crypto analysts are cautioning about a prolonged market downturn. Ki Young Ju, the founder of CryptoQuant, warned that the ongoing crypto meltdown could persist for 6 to 12 months.
Technicals point to further XRP price crash
The daily chart shows that Ripple continued its recent downward trend and moved to $1.6185, down by over 52% from its highest level this year.
The coin broke below several key support levels during the decline. Notably, it dropped below the psychological $2 level, which bulls had defended for months. It also moved under $1.9193, the 50% Fibonacci Retracement level and the neckline of a head and shoulders pattern.
A head and shoulders pattern is a common bearish reversal formation composed of three peaks: the head (at $3.4220 in this case) and two shoulders (at $3). A breakdown below the neckline typically confirms the bearish trend.
Worse, Ripple price moved below $1.80, where it made a false breakdown in February. It has also formed a death cross pattern as the 50-day and 200-day Weighted Moving Averages have flipped each other.
The WMA is often more responsive than exponential moving averages as it places greater emphasis on recent data. XRP has also moved below the weak stop & reverse level on the Murrey Math Lines.
Given these factors, the most likely scenario is that Ripple’s price drops below the $1 psychological mark and falls to $0.9340. This target is derived by measuring the distance from the head to the neckline, then applying that same distance downward from the neckline.
