- XRP is struggling with a 10% drop, driven by market disappointment over Trump’s Bitcoin Reserve decision and ongoing legal battles with the SEC.
- While long-term indicators show potential, short-term volatility could push XRP below key support levels if bearish trends persist.
XRP has found itself caught in a downward spiral, struggling to stay afloat amid market turbulence. The popular Ripple-based token is currently trading at $2.14, marking a nearly 10% drop. Over the past week, XRP has shed over a quarter of its value, leaving investors anxious about its next move.
Trump’s Bitcoin Reserve Decision Weighs on XRP
One of the primary catalysts behind XRP’s recent woes is President Trump’s Strategic Bitcoin Reserve Executive Order. Investors had hoped for a multi-crypto reserve that would potentially bolster XRP’s standing. However, Trump’s decision to focus solely on Bitcoin dampened market sentiment and contributed to the token’s continued decline.
Another major concern is the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). The SEC has not backed down, contesting the Programmatic Sales of XRP decision in its appeal filed on January 15. However, with former SEC Chair Gary Gensler stepping down and Commissioner Mark Uyeda stepping in as acting Chair, speculation about a possible settlement has intensified.
Ripple’s Technical Struggles: What’s Next?
XRP’s price action paints a mixed picture. The token is currently trading above its 200-day Exponential Moving Average (EMA) but remains below the 50-day EMA. This combination suggests bullish long-term potential but bearish short-term pressure.
If XRP manages to break past the 50-day EMA, bulls could target a March 2 resistance level of $3. A significant catalyst, such as positive news in the Ripple case, could push the token toward its all-time high of $3.60. However, if XRP fails to maintain its footing and drops below the key $2.20 support level, further declines could be in store.
Should the bears overpower XRP’s support at $1.93, the token could tumble toward the February 3 low of $1.70. A breach of this level would signal deeper trouble, potentially inviting more selling pressure.
XRP is facing significant headwinds, with legal uncertainties and market sentiment playing key roles in its recent struggles. While long-term indicators remain hopeful, short-term volatility may continue to dominate price action. Investors will be watching closely for updates on the SEC case and market reactions to Trump’s Bitcoin reserve policy. Until then, XRP remains in uncertain waters, hoping for a turnaround before sinking further.
