XRP skyrocketed by 33%, briefly touching $3 before pulling back to $2.6. Former U.S. President Donald Trump’s unexpected announcement triggered the surge. He confirmed a U.S. strategic crypto reserve that includes XRP, sparking immediate buying pressure.
Investors rushed into the market, fueling XRP’s price explosion. It outperformed Bitcoin, Ethereum, Solana, and Cardano, proving its resilience. The announcement signaled a major shift in government sentiment toward cryptocurrencies, increasing speculation about widespread adoption.
Why Trump’s Crypto Reserve Plan Matters
A U.S. strategic crypto reserve represents a significant departure from traditional reserves backed by gold or oil. This move suggests a potential long-term commitment to digital assets. With Trump’s backing, XRP could see increasing institutional interest, strengthening its position in the crypto market.
Traders responded instantly, driving up demand and increasing volatility. Many now wonder whether this rally will hold or fade. The market remains highly reactive to political and regulatory developments, making every update critical.
XRP Faces Resistance After Hitting $3
After its rapid climb, XRP struggled to maintain its momentum. It met resistance at $3 and dipped to $2.6. This retracement aligns with key technical levels that traders watch closely.
The Relative Strength Index (RSI) signaled overbought conditions after touching 70. It has since cooled to 48, indicating reduced buying pressure. Meanwhile, the MACD indicator turned bearish, suggesting a short-term correction may continue.
XRP now faces crucial levels that will determine its next move. The 50-hour Simple Moving Average (SMA) at $2.65 acts as immediate resistance, while the 200-hour SMA at $2.50 serves as key support. If XRP holds above $2.50, it could attempt another breakout past $3. However, a drop below this level may trigger further declines.
Regulatory Uncertainty Still Clouds XRP’s Future
Despite its bullish price action, XRP remains under regulatory scrutiny. The ongoing SEC lawsuit against Ripple continues to cast uncertainty over its long-term prospects. However, market sentiment could shift soon.
Forbes recently reported that Paul Atkins may replace Mark Uyeda as SEC chair. Atkins has a history of supporting cryptocurrency-friendly policies, which could benefit XRP. A favorable regulatory shift could open doors for institutional investors, further legitimizing XRP’s role in global finance.
Traders should closely watch any legal updates. A positive ruling or policy change could fuel another XRP rally. Conversely, extended regulatory uncertainty may limit its upside potential.
Can XRP Hold Above $2.50?
XRP stands at a critical crossroads. The next few days will determine whether it can sustain its momentum or retreat further. Technical indicators suggest a pause in the rally, but market fundamentals remain strong.
If XRP’s price maintains support above $2.50, buyers could regain confidence and push prices higher. A break past $3 could signal further gains, potentially setting new yearly highs. However, if XRP fails to hold, it may retrace deeper, testing lower support zones.
With Trump’s endorsement and shifting regulatory dynamics, XRP’s future remains highly speculative. Investors should stay informed, monitor price movements, and prepare for potential volatility. The next market catalyst could send XRP soaring again—or lead to another correction.
What’s Next for XRP?
The crypto market remains highly reactive to political statements and regulatory shifts. Trump’s support for a U.S. crypto reserve changed the landscape overnight. Now, the token must prove it can sustain gains amid technical resistance and legal uncertainties.
Read Also: XRP Dips to $2.63: Should Investors Brace for More Volatility?
As investors anticipate the next big move, XRP remains a focal point in the crypto space. Whether it rebounds or declines depends on support levels, regulatory developments, and broader market sentiment. The coming weeks will reveal whether XRP’s latest surge is just the beginning or a temporary spike.
