XRP (XRP-USD) saw a massive price explosion after Donald Trump confirmed its inclusion in a proposed U.S. strategic crypto reserve. The payments-focused token surged over 33% within hours, hitting $3 before pulling back to $2.6. According to CoinDesk, XRP outperformed Bitcoin, Ethereum, Solana, and Cardano, all of which also saw gains following the announcement.
Trump’s post on Truth Social sent shockwaves through the market. His plan to stockpile cryptocurrencies as part of a government reserve sparked a frenzy of buying. Unlike traditional reserves of oil or gold, a crypto reserve could signal a long-term commitment to digital assets at the federal level. Investors saw this as a potential game-changer, leading to aggressive buying.
XRP Faces Technical Resistance after the Rally
After the sharp rally, XRP’s momentum cooled. CoinDesk reported that the price retreated to $2.6, aligning with a descending trendline from its January highs. Technical indicators now suggest a temporary pause.
The Relative Strength Index (RSI), which measures momentum, hit an overbought level of 70 before dropping to 48. This signals that buying pressure has slowed. The MACD indicator has also turned bearish, with its line crossing below zero, confirming a short-term correction.
XRP now faces critical levels. The 50-hour Simple Moving Average (SMA) at $2.65 is acting as resistance. The 200-hour SMA at $2.50 is holding as key support. If XRP stays above $2.50, a move back toward $3 is possible. But a drop below that level could trigger further declines.
XRP’s Future Hinges on Market and SEC Developments
Beyond technicals, macro and regulatory forces are shaping XRP’s trajectory. The ongoing legal battle with the SEC remains a key concern. Forbes highlighted that Mark Uyeda is currently acting SEC chair, but crypto-friendly Paul Atkins is expected to take over. This shift could favor XRP, as a more lenient regulatory stance may remove roadblocks for institutional adoption.
If positive legal news emerges, XRP could sustain its rally and even push higher. On the flip side, if regulatory uncertainty lingers, XRP could struggle to hold its recent gains.
At the time of writing, XRP is sitting at $2.6294.
