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XRP’s Bearish Setup Points to 71% Crash, Analyst Warns

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  • XRP plunged 19.23% to $1.68 amid global market panic tied to “Black Monday.”
  • Analyst Mario warns of a 71.34% XRP drop, targeting a brutal $0.50–$0.70 zone.
  • $63.82M in XRP positions liquidated; open interest fell 22.48% to $2.80 billion.

Ripple’s native token, XRP, saw a steep decline on April 7, dropping by 19.23% to settle at $1.68—its lowest level in two months. This sharp drop came as fear swept through financial markets over what many are calling “Black Monday.” The concern follows aggressive tariffs introduced by Donald Trump, reigniting tensions between the US and China and shaking investor confidence worldwide.

XRP 1D graph coinmarketcap 33
Source: CoinMarketCap

The broader crypto market hasn’t escaped the turmoil either. The overall market capitalization plummeted by 10.75%, bringing the total down to $2.37 trillion. In parallel, traditional markets also flinched, with S&P 500 futures crashing by 4%, pointing toward one of the roughest trading sessions in recent times.

At the heart of this market chaos is Trump’s renewed trade war stance. On Sunday, in a statement reported by CNN, Trump remarked, “What’s going to happen with the market? I can’t tell you, but I can tell you, our country has gotten a lot stronger, and eventually it’ll be a country like no other.” Although he said he was “open to talking,” no hint of softening his stance, leaving investors uneasy.

XRP Forms Bearish Head and Shoulders Pattern

Ripple’s price collapse hasn’t gone unnoticed by traders. According to Mario, a well-followed market analyst, the weekly chart has now formed a bearish Head and Shoulders pattern. His chart marks a ‘Free Fall Zone,’ indicating a potential 71.34% drop, which could bring the price to the lower range between $0.50 and $0.70. This would represent a $1.4415 loss from the analysis price of $1.90.

XRP 7
Source: Trader Mario

XRP’s technical setup adds more weight to this bleak outlook. It has not only dropped below a major support level, but also fallen beneath its 200-day simple moving average. This signals a shift in trend—from hopeful to heavily bearish. Meanwhile, the 50-day SMA crossing under the 150-day SMA is another warning light. If this crossover confirms, XRP could face an extended downtrend.

Meanwhile, according to Coinglass, a staggering $63.82 million in open positions tied to XRP were liquidated. Out of this, $56.83 million were long positions. The liquidation of longs has put even more selling pressure on Ripple, dragging its price down further.

Open Interest Drops Sharply Lower

Alongside the liquidations, XRP’s open interest has seen a major decline—dropping 22.48% to $2.80 billion. Funding rates have also turned negative, showing a tilt in sentiment as short sellers are now dominating the space, expecting XRP to slide even further. 

Coinglass 1
Source: coinglass

This sentiment shift is backed up by the Relative Strength Index, which has dropped to 29.73. While that marks oversold territory, it also suggests the downtrend could soon be running out of steam.

Data from Google Trends shows the search term “Black Monday” hitting the maximum score of 100. This spike in interest draws a grim parallel to the infamous 1987 market crash and signals the level of anxiety bubbling up across traders and investors alike.

As of now, XRP trades below $1.90, far away from its recent highs. With traders eyeing the upcoming weekly close, all eyes are on whether Ripple can avoid validating Mario’s bearish call. He didn’t sugarcoat his warning, calling the current chart structure “really ugly.”

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Trump Imposes 25% Tariffs on Mexico & Canada – No Deal in Sight

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Key Takeaways:

  • Trump signed a tariff deal, raising import duties on China to 20% and imposing 25% tariffs on Mexico and Canada.
  • U.S. markets reacted negatively, with stocks falling and North American currencies weakening.
  • Mexico and Canada vowed to respond, warning of economic consequences.

U.S. President Donald Trump intensified his trade policy by signing an agreement that raises tariffs on Chinese imports from 10% to 20%, according to recent reports. Additionally, he confirmed that a 25% tariff on goods from Mexico and Canada would take effect on Tuesday, leaving no room for negotiation. The move has sparked fears of economic instability, with investors bracing for the fallout.

Trump justified the action by linking it to the campaign to halt fentanyl trafficking into the U.S., stating that China had not made significant efforts to curb the crisis. He also argued that the tariffs would lead manufacturers to shift their production to the United States.

But the immediate impact on the financial markets was vicious. The Dow Jones dropped 649 points, and the S&P 500 and Nasdaq Composite tumbled. The Mexican peso and Canadian dollar also declined, reflecting investor fears of economic dislocation.

North American Response and Economic Fallout

Mexico and Canada were swift to react, saying that they were willing to retaliate against the tariffs. Canadian Foreign Minister Mélanie Joly called the move chaotic and stated that Ottawa would do what was necessary to protect its economy. Mexico’s President Claudia Sheinbaum informed the public that her government had contingency plans, but she did not elaborate.

The automobile sector, which relies on cross-border supply chains, is expected to be hit hard. Share prices of leading automakers such as General Motors and Ford declined.

Increased tariffs are predicted by industry analysts to lead to increased costs to consumers, particularly in the prices of cars. Economists also fear that North American trade disruptions will lead to slower economic growth and push inflation higher.

Further Trump’s Tariff Measures and Global Impact

Trump’s tariff drive extends beyond North America. He announced that as of April 2, the U.S. would impose reciprocal tariffs on countries that impose duties on U.S. products. That could make trade relations with the European Union and others more difficult. Trump also initiated new investigations into imports of lumber and copper, signaling further protectionist action ahead.

White House trade adviser Peter Navarro dismissed concerns about inflation, stating that long-term benefits from returning production to the U.S. outweigh short-term price increases.

Other economists have cautioned that mounting trade wars could send the world economy into recession. The latest tariffs are piece of a broader campaign to overhaul U.S. trade policy, but the long-term impact is uncertain as companies, consumers, and foreign governments brace for the consequences.

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