NOIDA (CoinChapter.com) — Ripple (XRP) price stood near $2.11 on April 21, down approximately 16% from March highs near $3.40. Recent price action highlights broader crypto market instability, triggered by escalating geopolitical tensions and aggressive trade policies under President Donald Trump. Trump’s sweeping tariffs, including a universal 10% levy on imports and dramatic rates of up to 145% targeting Chinese goods, shook investor confidence, leading to a global market sell-off and wiping out nearly $10 trillion from global markets.
Despite these macroeconomic headwinds, cryptocurrencies remain relatively resilient. Bitcoin (BTC) and Ethereum (ETH) showed notable recoveries, fueling cautious optimism for altcoins like XRP. Yet, prevailing sentiment remains wary, evident from the Crypto Fear & Greed Index reading at 37, signaling continued investor fear and uncertainty.
Moreover, traders remain watchful of potential further volatility triggered by ongoing trade tensions and economic fallout.
XRP Price Forms Bullish Pattern, Targets a Strong Rally
XRP’s current technical formation, better visible on the 3-day price chart, highlights a classic falling wedge pattern. A pair of converging downward-sloping trendlines characterizes the pattern. The falling wedge typically signals a bullish reversal after periods of consolidation or declining bearish momentum. XRP’s price has gradually narrowed within this formation, indicating reduced volatility and likely accumulation by traders positioning for a bullish breakout.
XRP must decisively break above the wedge’s upper resistance near the $2.40–$2.50 price zone for confirmation. A breakout with increased trading volume would enhance credibility and validate this bullish setup.
Calculating the target involves measuring the wedge’s maximum vertical width and projecting this distance upward from the breakout point. As per the rules of technical analysis, XRP price could rally to a projected price target near $3.84, marking a spike of over 81% from current trading levels.
On the downside, continued rejection at wedge resistance could prolong consolidation, increasing the likelihood of revisiting lower support between $1.70 and $1.80. Given current volatility levels, traders should remain cautious and await clear breakout confirmation before initiating new positions, ensuring they avoid exposure to premature downside risks.
But Coinbase Futures Plan Faces Legal Clouds
Coinbase Derivatives filed for “self-certification” with the Commodity Futures Trading Commission (CFTC) on April 21, aiming to launch XRP futures trading pending regulatory approval. If granted, these cash-settled XRP contracts would mark Coinbase as one of the first regulated exchanges offering such derivatives, potentially significantly enhancing institutional exposure and liquidity in XRP markets.
Futures trading would allow institutional investors, including hedge funds and asset managers, to speculate on XRP’s price movements without holding the underlying asset directly, thus reducing custody risks and regulatory complexities.
This strategic initiative follows Ripple’s partial legal victory against the SEC, which classified XRP transactions on secondary markets as non-securities.
Furthermore, Coinbase’s entry into regulated XRP futures aligns with broader industry movements, notably Grayscale’s recent filing for an XRP spot ETF, demonstrating growing credibility and acceptance of XRP among traditional financial entities.
However, Coinbase’s path forward faces significant regulatory obstacles, particularly following the recent lawsuit by Oregon’s Attorney General accusing the exchange of facilitating sales of unregistered securities.
Interestingly, Ripple remains notably absent from Oregon’s legal complaint, suggesting recognition of its unique regulatory status. Despite XRP’s exclusion, broader uncertainties around Coinbase’s regulatory compliance could dampen investor excitement around the proposed futures offering, potentially delaying market enthusiasm and impacting short-term sentiment.
As Coinbase navigates these legal challenges, the absence of XRP from the lawsuit could likely benefit the Ripple token. As the wider market consolidates, XRP could take some time to break out of the pattern. Hence, it is a game of wait and watch for traders now.
