XRP Risks Triggering a 50% Crash Setup Amid US Economic Woes

XRP is flashing a strong bearish signal against the U.S. dollar, with a classic head-and-shoulders pattern emerging on the 3-day chart.

Another 50% Crash Next for XRP

The head-and-shoulders pattern, a widely recognized reversal structure, consists of three peaks: a higher high (head) flanked by two lower highs (shoulders). This setup typically indicates trend exhaustion and is confirmed once the price breaks below the neckline, triggering a downward move equivalent to the pattern’s height.

As of March 10, XRP/USD has breached its neckline support by nearly $2.20, intensifying the likelihood of further downside.

The projected breakdown target, calculated by measuring the height from the head to the neckline and extending it downward, suggests XRP could revisit $1.15 in the coming weeks, down 50% from the current price levels.

Adding to the bearish outlook, XRP’s Relative Strength Index (RSI) is trending lower at 46.14, reflecting weakening momentum. Moreover, XRP is trading below its 50-day exponential moving average (EMA) at $2.06, which has become resistance.

The 200-day EMA at $1.14 aligns closely with the bearish target, reinforcing that XRP could seek support in that region.

Trump’s Executive Order Cuts Off Potential XRP Demand

The downside pressure on XRP intensified after Trump’s latest executive order on digital assets explicitly states that the U.S. government will not allocate taxpayer funds to buy additional altcoins.

Instead, the administration will only maintain its existing crypto holdings, which reportedly include Bitcoin (BTC) and Ethereum (ETH) but not XRP.

This decision indicates a growing institutional shift toward Bitcoin and Ethereum while sidelining other altcoins like XRP. Without new political or governmental demand, XRP lacks a key catalyst that could have helped sustain bullish momentum.

US Economic Woes Are Adding to XRP Bearish Sentiment

Mounting unease over the potential fallout from trade tariffs and sweeping government job cuts has added to the bearish outlook for XRP, as risk appetite continues to decline across financial markets.

The uncertainty has pushed 10-year Treasury yields five basis points lower, reflecting growing concerns that the world’s largest economy may be headed toward a slowdown.

Meanwhile, the US dollar index remains near four-month lows, signaling potential volatility for risk assets—including cryptocurrencies like XRP.

Trump recently acknowledged that the U.S. economy is in a “period of transition”, while Treasury Secretary Scott Bessent warned of short-term economic disruptions.

Adding to the uncertainty, Bessent ruled out policy interventions to support financial markets—a move effectively dismisses the possibility of a “Trump Put” for equities and risk assets, including crypto.

Morgan Stanley strategist Michael Wilson predicts that the S&P 500 could drop 5% in the year’s first half, a downturn that could drag XRP and other altcoins lower as liquidity tightens.

Similarly, JPMorgan Chase & Co. analysts have turned cautious on risk assets, citing the impact of tariffs and fiscal cuts on corporate earnings and investor sentiment.