A few days ago, U.S. President Donald Trump signed an executive order to establish a Crypto Strategic Reserve. What surprised the market was the inclusion of XRP, Solana, and Cardano alongside Bitcoin. This unexpected move initially fueled optimism, leading to an 8.6% surge in XRP’s value over the past week.
However, the rally proved to be short-lived. In the past 24 hours, XRP has dropped by over 5.2%, raising concerns that the initial enthusiasm may be fading. Was Trump’s decision truly a game-changer, or was the surge merely a temporary reaction?
XRP’s Volatility After Trump’s Announcement
Despite its recent decline, XRP saw strong bullish momentum earlier in the week. On March 1, it was trading at $2.14 before skyrocketing by 35.5% to cross the $3 mark on March 2. However, by March 3, the price had retraced to $2.38, and despite a brief recovery between March 4-6, XRP has now fallen again, dropping 4.9% in the last 24 hours.
The price swings suggest that while Trump’s announcement initially provided a strong catalyst, market realities have since tempered the excitement.
US Economic Uncertainty Weighs on Crypto
The broader economic landscape is also influencing the crypto market. Recent U.S. economic reports have painted a mixed picture:
- The unemployment rate ticked up from 4% to 4.1%, contrary to expectations.
- The non-farm payrolls index increased from 125K to 151K, but this fell short of the anticipated 160K.
With inflation concerns and Federal Reserve policies in focus, investors have grown cautious, leading to increased selling pressure across crypto assets.
Can Trump’s Crypto Reserve Plan Pass?
According to Nikolaos Panigirtzoglou, JPMorgan’s managing director of global market strategy, the likelihood of congressional approval for Trump’s crypto reserve plan is below 50%. If approved, the reserve would likely prioritize Bitcoin and Ethereum, leaving XRP, Solana, and Cardano in uncertainty.
This explains why XRP’s rally was short-lived—many traders took profits near the $3 level, contributing to the current price decline.
As of now, XRP is trading at $2.35. Analysts warn that if selling pressure persists, the price could dip to $1.95. However, if XRP holds above $2.47 and gains buying momentum, a move toward $3.20 is possible, though strong resistance remains at $2.99.
Also Read: XRP Eyes Historic Breakout Against Ethereum—Will It Finally Surpass Key Resistance?
The coming days will be crucial in determining whether XRP can sustain its gains or if the hype around Trump’s announcement was just a fleeting moment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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