The Ripple (XRP) market experienced significant volatility this week following U.S. President Donald Trump’s announcement of a strategic cryptocurrency reserve—sparking both price surges and sharp corrections, along with high-profile debate among crypto leaders.
After surging 40% over the weekend on news that XRP was included in the proposed national crypto reserve, the asset pulled back 9% on Monday, settling around $2.70. Despite the retreat, momentum remains strong, with on-chain data and expert commentary suggesting continued upside potential in the near term.
XRP Retreats from $3 Resistance After Weekend Surge
XRP’s price trajectory shifted dramatically over the weekend after former President Donald Trump announced an executive order to establish a national cryptocurrency strategic reserve—a move widely interpreted as a major endorsement of digital assets.
The official announcement, posted on Trump’s Truth Social platform, revealed that the reserve would include five key cryptocurrencies: XRP, Solana (SOL), Cardano (ADA), Bitcoin (BTC), and Ethereum (ETH).
This unexpected diversification beyond Bitcoin sent all five assets soaring, with XRP jumping from an opening price of $2.14 on Sunday to nearly $3—a 40% surge within hours.
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However, the rally stalled at the critical $3 resistance level. Profit-taking intensified on Monday as traders locked in gains, leading to a 9% correction. At the time of reporting, XRP stabilized at $2.70, maintaining most of its weekend gains despite short-term bearish pressure.
Technical indicators suggest the pullback is healthy rather than destructive. XRP remains above key support levels, and the underlying momentum from institutional recognition continues to build.
Charles Hoskinson Defends XRP’s Inclusion Against Peter Schiff’s Criticism
Trump’s decision to include XRP in the strategic reserve came shortly after Ripple CEO Brad Garlinghouse publicly advocated for a more diversified U.S. government crypto portfolio—urging policymakers to look beyond Bitcoin.
This stance drew sharp criticism from Bitcoin maximalists, including economist Peter Schiff, who questioned the rationale behind including altcoins like XRP in a national reserve.
In a post on X (formerly Twitter), Schiff expressed skepticism:
"I understand the argument for a Bitcoin reserve. I don’t agree with it, but I get it. We have a gold reserve. Bitcoin is digital gold—better than analog gold. So let’s create a Bitcoin reserve. But what’s the argument for an XRP reserve? Why do we need this?"
His comments ignited a broader debate about the role of altcoins in national financial strategy.
Enter Charles Hoskinson, founder of Cardano (ADA), who swiftly responded in defense of XRP’s inclusion:
"Because XRP is great technology, it's a global standard, has survived ten brutal cycles, and has one of the strongest communities. I think the president made the right decision."
Hoskinson’s endorsement adds weight to the argument that a diversified crypto reserve enhances technological resilience and global competitiveness. By including assets like XRP—known for its fast cross-border payment solutions—the U.S. could position itself as a leader in both financial innovation and digital infrastructure.
With government funds now expected to flow into XRP, ADA, SOL, and ETH, Bitcoin’s dominance in the crypto market may face increasing pressure—a shift that could redefine long-term asset allocation in public and private portfolios alike.
290 Million XRP Deposited on Binance Amid Rising Trading Activity
Even as prices corrected on Monday, on-chain activity signaled that market participants are preparing for further movement.
According to data from CryptoQuant, XRP deposits to Binance surged by over 200,000 units within 24 hours following Trump’s announcement. This influx pushed Binance’s total XRP exchange reserves to a 60-day high of 2.9 million tokens.
At current prices, this represents approximately $783 million in newly available trading supply—a significant injection of liquidity that could fuel both volatility and breakout potential.
Exchange reserves are a key indicator of trader sentiment. When large volumes move into exchanges, it often signals an intent to sell or trade in the short term. However, in this case, the timing suggests many investors are positioning themselves ahead of anticipated government buying activity.
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While increased supply typically exerts downward pressure, sustained demand—especially from institutional or governmental sources—can absorb selling and drive prices higher.
Short-Term Outlook: Is XRP Ready for a Break Above $3?
The recent spike in exchange deposits introduces short-term volatility but doesn’t necessarily indicate a bearish reversal.
Market sentiment remains divided:
- Short-term traders are taking profits after the 40% rally.
- Bearish critics, particularly Bitcoin purists, continue to question XRP’s fundamentals.
- Yet strategic bulls see the government’s endorsement as a game-changer—one that could trigger sustained buying once official purchases begin.
Technically, XRP has held above major support zones. The 9% correction preserved most of the prior gains, suggesting strong underlying demand.
For momentum to resume upward, XRP must reclaim key resistance at $2.97**—the upper Bollinger Band level. A close above this threshold could open the path to **$3.20.
Conversely, if selling pressure intensifies, initial support lies at $2.52** (the middle Bollinger Band). A breakdown below this level could test **$2.08, though such a move would require significant macroeconomic headwinds or negative regulatory news.
Absent major external shocks, the balance of power still favors bulls—especially given that the current price aligns closely with the midpoint of Sunday’s explosive rally.
Technical Analysis: Bullish Signals Remain Intact
Despite Monday’s dip, technical indicators continue to support a bullish outlook:
- Bollinger Bands: Price remains above the midline ($2.52), indicating sustained strength.
- Parabolic SAR: Dots remain below price candles, confirming an ongoing uptrend.
- Volume Profile: Sunday’s surge was accompanied by high volume; Monday’s sell-off occurred on lower volume—suggesting weak conviction among bears.
These signals point to a market digesting gains rather than reversing course.
If demand holds firm and government acquisition timelines become clearer, XRP could break through $3 in the coming days—with potential for further extension toward $3.50 or higher.
Frequently Asked Questions (FAQ)
Q: Why did XRP drop after Trump’s crypto reserve announcement?
A: The drop was due to profit-taking after a 40% weekend surge. Traders locked in gains at resistance near $3, causing a short-term pullback—a common pattern in crypto markets after major news events.
Q: Does government inclusion guarantee long-term price growth for XRP?
A: While not a guarantee, official adoption significantly boosts credibility and demand. Historical precedent shows that assets included in national reserves often see sustained institutional interest and valuation growth.
Q: What does Charles Hoskinson’s support mean for XRP?
A: As a respected blockchain innovator, Hoskinson’s endorsement lends technical legitimacy to XRP. His defense highlights its global utility and resilience—key factors for long-term adoption.
Q: How do exchange deposits affect XRP’s price?
A: Large deposits often precede increased selling or trading activity. However, when aligned with strong demand (e.g., from institutional buyers), they can provide liquidity for upward breakouts instead of crashes.
Q: Can XRP break above $3 again soon?
A: Yes—reclaiming $2.97 is critical. With bullish momentum intact and government buying expected, a return above $3 is likely if selling pressure doesn’t escalate unexpectedly.
Q: Is XRP still a good investment after the recent volatility?
A: For investors focused on adoption trends and macro-level shifts, yes. Volatility is normal in crypto; what matters is increasing utility and recognition—which XRP now has in spades.
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