Can XRP Bulls Smash Through $3 Despite Bearish Inflation News?
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Ripple's XRP token is facing bearish pressure as new US tax policies raise inflation concerns. President Donald Trump has imposed a 25% tariff on imported cars and oil from Russia, causing panic in financial markets. The Crypto Fear and Greed Index has dropped to 34, close to the 'extreme fear' threshold, reflecting negative investor sentiment.
XRP is currently trading at $2.10, up slightly by $0.04 (0.01942%) from the previous session. During the day, the price fluctuated between $1.97 and $2.10.
Cryptocurrency analyst Peter Brandt has pointed out a 'Head and Shoulders' pattern on the XRP price chart, suggesting a possible drop to $1.07. However, if XRP holds the $2 support level, a recovery can be expected. To reach $3, XRP needs to clear key resistance levels at $2.24 and $2.50.
Factors affecting XRP price:
Legal issues: Ripple is in the process of settling a lawsuit with the US Securities and Exchange Commission (SEC). The outcome of this lawsuit will have a major impact on the value and acceptance of XRP in the market.
Macroeconomic policies: Tariffs and economic policies of the US government can impact investor sentiment and capital flows into the cryptocurrency market.
Market sentiment: The Crypto Fear and Greed Index shows the level of investor concern. High levels of fear can lead to sell-offs, while greed can drive buying.
Conclusion:
XRP is at a critical level, with the potential for a sharp decline if it loses the $2 support level. However, if it holds and breaks through the resistance levels, the target of $3 is achievable. Investors should closely monitor economic and legal developments to make reasonable decisions.