XRP faced intense selling pressure this week, plunging below the critical $2 mark amid broader market panic triggered by President Donald Trump’s sweeping global tariff announcement.
The sharp downturn on April 2 led to a 5.63% drop in XRP’s price, contributing to a wider cryptocurrency market sell-off that erased more than $140 billion in value.
Despite the steep decline, XRP managed to stage a modest rebound, rising nearly 3% intraday to trade at $2.06 at press time.
The recovery comes amid early signs of market recovery and coincides with the Senate Banking Committee’s advancement of Paul Atkins’ nomination to head the U.S. Securities and Exchange Commission (SEC).
XRP at risk of breakdown to $1.30
Despite a short-term recovery, analysts warn that XRP remains vulnerable to a significant downward move.
The token is flashing a major technical red flag after decisively breaking below the $2 neckline of a head-and-shoulders pattern, a bearish formation commonly associated with trend reversals and steep corrections, according to crypto analyst Ali Martinez on April 4 on X.
If XRP fails to hold above the $2 level, the pattern could confirm a breakdown with a downside target of $1.30, representing a potential 36.6% decline from current levels.
That being said, while the advancement of Paul Atkins’ nomination to lead the U.S. Securities and Exchange Commission could eventually pave the way for more favorable crypto regulation, market sentiment remains fragile.
For now, there is little in the way of a bullish catalyst strong enough to spark a sharp rebound, keeping XRP under pressure and the risk of further downside firmly in play.
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