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XRP Pulls Back After 25% Surge Following Trump's Crypto Reserve Proposal

XRP Pulls Back After 25% Surge Following Trump's Crypto Reserve Proposal

YellowYellow2025/03/04 02:33
By:Yellow

XRP , the payments-focused cryptocurrency, has paused its upward momentum after Donald Trump announced plans for a strategic token reserve .

The digital asset surged 25% within hours of Trump's Truth Social post Sunday, reaching $3 before retreating to $2.6 at press time. This pullback has brought prices back to the descending trendline that began with January 16 highs.

Trump's proposed reserve would include XRP alongside Bitcoin , Ethereum , Cardano and Solana . The announcement triggered immediate market reaction across these cryptocurrencies.

Technical indicators suggest mixed signals for XRP's short-term trajectory. The relative strength index, which measures price momentum, climbed to 70 late Sunday before falling to 48. This retreat from overbought territory potentially sets the stage for renewed upward movement.

"The breach of the 50-hour SMA reflects short-term bearish control, but the 200-hour SMA at $2.5 is critical support," noted crypto analysts tracking the token's movement.

Price action currently shows XRP trading below its 50-hour simple moving average of $2.65, indicating weakness. However, the broader 200-hour SMA at $2.50 continues to provide underlying support.

The Moving Average Convergence Divergence on hourly charts confirms momentum shifts. Its line crossed below the signal at the $3 mark and now sits below zero, validating the bearish turn following the initial rally.

Volatility has decreased significantly after the earlier spike. The 20-hour Bollinger Bands show $2.9 as the upper boundary and $2.4 as the lower limit, with current prices sitting near the middle at $2.6.

At $2.62, XRP stands at a critical pivot point. A break below $2.50 could trigger further declines, while movement above $2.65 might target the recent $3 high. Short-term momentum currently favors bears, though traders are closely watching volume patterns for signs of the next decisive move.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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