A couple of days ago, US President Donald Trump signed an executive order to create a Crypto Strategic Reserve. Certain elements of the order left many crypto enthusiasts surprised, as it advocated for the inclusion of XRP, Solana and Cardano, along with Bitcoin, in the reserve. XRP’s seven day growth of 8.6% suggests that the XRP market has benefited from Trump’s action. However, the current situation in the market does not look promising. In the last 24 hours alone, the XRP price has declined by over 5.2%. It appears that the market has partly lost the initial excitement.
Notably, experts indicate that there is little chance for Trump’s strategic crypto reserve plan to receive congressional approval. The question is: has the uncertainty around Trump’s reserve plan affected the XRP market?
XRP Rallies to $3 After Trump’s Crypto Reserve Announcement
The overall trend in the XRP market has been positive this week. In the last seven days alone, the market has surged by approximately 8.6%. At the start of March 1, the price of XRP was at $2.14. In the first two days of the month alone, the market climbed by over 35.51%.
At one point on March 2, the market even broke above the $3 level. On March 3, the XRP price plummeted to a low of $2.38. Although between March 4 and 6, the market attempted to recover from the correction with a growth of 8.82%, it has witnessed a massive drop of 4.9% in the last 24 hours.
The above-mentioned price action clearly suggests that the XRP market responded positively to Trump’s announcement regarding the strategic crypto reserve, though the positive trend lasted only a brief period.
Macroeconomic Headwinds Stall XRP’s Momentum
Yesterday, at least two important economic index release events occurred in the US market. The US non farm payrolls index grew from 125K to 151K – far below the expectation of 160K.
The US unemployment rate climbed from 4% to 4.1% in February. The expectation was that it would stay at the 4% level itself.
The economic events indicate that the macroeconomic scenario in the US is not too impressive.
Experts say that concerns about inflation and Federal Reserve policies have led to reduced risk appetite among crypto investors.
JPMorgan’s Doubts About Crypto Reserve Approval Weigh on Sentiment
Recently, Nikolaos Panigirtzoglou, the managing director of global market strategy at JPMorgan, stated that the chance of Trump’s strategic crypto reserve receiving congressional approval is less than 50%. He opined that if an US strategic crypto reserve is approved, it would be difficult to include tokens other than Bitcoin and Ethereum.
This clearly explains why the initial excitement after Trump’s reserve announcement has failed to last long. Reports indicate that many traders took profits near the $3 mark.
XRP’s Future Outlook: Uncertainty Prevails
Currently, the XRP price stands at $2.35. Analysts warn that if selling pressure increases, the price could drop as low as $1.95.
According to analysts, if XRP can hold above $2.47 and gain buying volume, a move toward $3.20 is possible. However, there does exist strong resistance at the $2.99 level.
