XRP experienced a significant price surge following news that former President Donald Trump announced plans for a strategic crypto reserve that would include popular cryptocurrencies such as Bitcoin, Ethereum, and XRP. The coin spiked by 5%, reaching a high of $2.65 as traders reacted to the potential for increased demand.
However, while the news created short-term excitement, XRP’s price may face a pullback due to technical concerns and the uncertainty surrounding Trump’s plan. Analysts are warning that the rally might be short-lived, as the strategic crypto reserve could encounter significant hurdles in the legislative process.
XRP’s Technical Analysis Signals Risk of Reversal
On the daily chart, XRP has formed a classic head and shoulders pattern, a bearish reversal signal. The left and right shoulders are both marked at $2.89, while the neckline is set at $1.95. A drop below this neckline would signal a potential downside for the coin, with the next level of support around $1.95. If this level is broken, the price could fall further, testing lower levels.
Moreover, the overall market sentiment remains uncertain, as Trump’s proposal requires Congressional approval. Without significant progress in the legislative process, the bullish sentiment around XRP could begin to wane.
What’s Next for XRP Price?
While XRP’s price has been boosted by the news of Trump’s crypto reserve plan, the coin’s technical setup, combined with potential legislative delays, suggests that the price could face downward pressure in the near term. Traders should remain cautious and watch for any confirmation of a break below the $1.95 neckline, which could lead to further declines.
In conclusion, while XRP’s rally was fueled by the crypto reserve announcement, the coin faces significant risks as it enters a critical technical phase. The market will likely remain volatile, and investors should monitor key support levels to gauge the next potential move for XRP.
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