XRP Price Analysis: Will Trump’s Crypto Reserve Keep XRP Above $3?
The post XRP Price Analysis: Will Trump’s Crypto Reserve Keep XRP Above $3? appeared first on Coinpedia Fintech News
A few days ago, US President Donald Trump 
Donald Trump
Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election
President
signed an executive order to establish a Crypto Strategic Reserve. But what really caught everyone off guard was the inclusion of XRP, Solana, and Cardano alongside Bitcoin. The move sparked excitement in the market, with XRP surging 8.6% in just a week.
However, the rally didn’t last long. In the past 24 hours, XRP has dropped over 5.2%, raising concerns about whether the initial hype is fading.
Is Trump’s plan really a game-changer for XRP, or was it just a temporary boost? Let’s break it down.
XRP’s Price Swings After the Announcement
Despite the recent dip, XRP has seen strong gains this week. On March 1, the token was trading at $2.14, and within just two days, it surged over 35.5%, briefly crossing the $3 mark on March 2.
However, this rally didn’t last long. By March 3, XRP had fallen to $2.38. The market then attempted a recovery, gaining 8.82% between March 4 and 6, but in the last 24 hours, it has dropped another 4.9%. This suggests that while Trump’s announcement initially boosted the market, the effect was short-lived.
US Economic Data Adds to Market Uncertainty
Recent economic reports from the US have added to the uncertainty in financial markets.
- The unemployment rate rose from 4% to 4.1%, despite forecasts predicting it would stay the same.
- The non-farm payrolls index increased from 125K to 151K, but this was well below the expected 160K.
These numbers indicate that the US economy is under pressure. Concerns over inflation and Federal Reserve policies have also led to lower risk appetite among crypto investors.
Can Trump’s Crypto Reserve Plan Pass Congress?
Nikolaos Panigirtzoglou, managing director of global market strategy at JPMorgan, believes Trump’s crypto reserve proposal has less than a 50% chance of gaining congressional approval. He also noted that if the reserve does get approved, it would likely only include Bitcoin and Ethereum, making it difficult for XRP, Solana, and Cardano to be part of it.
This explains why XRP’s rally was short-lived. Reports suggest that many traders took profits near the $3 level, contributing to the recent decline.
What’s Next for XRP?
At the moment, XRP is trading at $2.35. Analysts warn that if selling pressure increases, the price could drop as low as $1.95.
On the other hand, if XRP holds above $2.47 and sees strong buying volume, it could move toward $3.20. However, there is strong resistance at $2.99, which may limit further gains.
The coming days will be crucial in determining XRP’s next move, as investors weigh the impact of macroeconomic conditions and political developments on the crypto market.
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