XRP price staged a strong comeback as the financial market moved from fear to euphoria following Donald Trump’s decision to pause tariffs on most countries. After crashing to $1.6100 on Monday, the Ripple price rose 30% to $2.15. This article provides an outlook for XRP after averting two disasters.
XRP Price Outlook as it Averts 2 Key Disasters
Ripple coin has averted two important disasters, potentially leading to a sustained comeback in the coming weeks.
First, the coin avoided more downside as recession risks jumped. Now, with the fear of widespread tariffs fading and inflation falling, the Federal Reserve is likely to start cutting interest rates soon.
The upcoming inflation data is expected to show that the headline Consumer Price Index (CPI) dropped from 2.8% in February to 2.6% in March. If the data comes as expected or is lower than expectations, the Fed will likely adopt a more dovish tone since the economy is slowing. Such a move would lead to higher crypto prices.
At the same time, the current fiscal policy supports crypto prices, as Trump is promoting his tax cut bill in Congress. That bill will have several tax cuts and deregulation measures that could boost cryptocurrency prices. For example, Donald Trump wants to eliminate taxes on tips, meaning that some of those funds may be directed to the crypto market.
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Ripple Head and Shoulders Pattern Stalls
Second, the bearish outlook of the XRP price has also stalled for now, as the coin has moved above the neckline again. It has formed a long-legged doji candlestick and a bullish engulfing chart pattern on the daily chart.
This doji comprises a long shadow, a tiny body, and a small upper shadow. It is a highly popular bullish reversal pattern. The bullish engulfing has a large bullish candlestick that fully engulfs a small bearish candle.
Therefore, the XRP price is likely to continue rising as the fear and greed index starts increasing. The index tracked by CNN has already moved from the extreme fear zone of 4 to 17, meaning it may enter the greed zone soon. If this happens, the coin may jump and retest the YTD high of $3.4.
However, there is a risk that this price action is a false breakout. A solid XRP rebound will be confirmed if the coin rises above the 100-day moving average at $2.2580 and the shoulders of the head and shoulders pattern at $3.4.
READ MORE: XRP Price Prediction: Ripple Needs to Overcome 3 Key Risks
