Following Donald Trump's announcement to include XRP in the US strategic reserve, its price soared by 34% but then retraced by 50% the next day. Analysts offer insights into the reasons and implications of this movement.
Historical Rise and Fall of XRP
Previously stable under $0.50, XRP's price skyrocketed to between $2 and $3 after Trump's announcement to include the cryptocurrency in the strategic reserve. However, it soon began a pronounced decline the next day.
Institutional Investor Outflow
According to Ki-Young Ju, the surge is not due to accumulation but rather distribution by large investors. Analyst Maartunn noted a historic low in XRP inflows. Binance saw reserve levels rise from 2.72 to 2.90 billion tokens, indicating sell pressure despite political backing.
Key Levels and Analyst Predictions
Technically, the $2.50 level is crucial. Analyst Dom suggests that without reclaiming it, further growth is at risk. Meanwhile, Dami DeFi observes XRP's consolidation below a major resistance. However, Matt C believes a bearish pattern is forming, supported by falling RSI, signaling a potential trap for small investors.
Despite political backing, Trump's statements have spurred distrust among large investors, reflected in the price. XRP leaves many questions open amidst ongoing market cycles and uncertainty in court cases.
