XRP Price Drops 13% After Inclusion in US Crypto Strategic Reserve

XPR, the cryptocurrency associated with Ripple, is experiencing market volatility following its inclusion in the US crypto strategic reserve

The cryptocurrency market continues to be a hot topic, especially with the recent announcement of President Donald Trump’s crypto strategic reserve, which included Bitcoin (BTC), Ethereum (ETH), and XRP.

Following the news, XRP experienced a remarkable 35% price surge in a single day. However, despite the initial enthusiasm, the digital asset has since pulled back, currently trading at $2.32, marking a 13.04% decline from recent highs.

This price action comes amid conflicting behavior from whales, leaving market observers divided on XRP’s short-term direction.

Whales Unwind Holdings As XRP Price Drops

According to reports, nearly 1 billion XRP coins were purchased in a 24-hour period, suggesting interest from major players.

However, contradictory reports indicate some whales may be entering a distribution phase. Notably, CryptoQuant founder Ki-Young Ju observed that large investors have increased transaction activities in the $2-$3 range over the past month, which he claims is typically associated with a market downturn.

Another analyst identified as Maartunn claimed that “negative whale flow” has reached an all-time low. This technical description refers to a period when major investors liquidate their assets to secure profits, which is being monitored closely by traders.

Exchange data seems to support the selling pressure theory. The XRP reserve on Binance has reportedly increased from 2.72 billion to 2.90 billion tokens, which typically signals increased selling activity.

This current market behavior stands in contrast to early February, when whales aggressively accumulated XRP. During that period, approximately 520 million XRP were purchased in just one week, highlighting the significant shifts in market dynamics.

Despite the price pullback, on-chain metrics show growing user interest. XRP has seen a rise in daily active addresses, with over 135,000 recorded on March 4. This uptick suggests broader market engagement beyond just whale activity.

The cryptocurrency’s Relative Strength Index (RSI) sits at 45.61, indicating a neutral position. This technical indicator shows there’s still room for upward momentum if buying pressure increases.

For XRP to resume an upbeat trajectory, analysts point to $2.55 as a key resistance level. Breaking above this threshold could trigger renewed buying interest and push the cryptocurrency toward higher price targets.

Derivatives Market Shows High Options Volume

The derivatives market presents an interesting picture of trader sentiment. While overall volume decreased by 26.34% and Open Interest dropped by 25.99%, the Options market tells a different story.

Options volume has surged by an impressive 532.92%, with open interest increasing by 326.50%. These figures suggest traders are positioning for potential high volatility in the near future.

Several analysts have shared price predictions for XRP. Analyst Dark Defender suggested a potential target of $77, though this would require breaking through several key levels, including $5.85, $8.03, and $18.22.

An even more optimistic prediction comes from analyst Random Crypto Pal, who projected XRP could reach $385, representing a 99,900% increase from July 2024 lows.

Analyst Dom notes that XRP failed to sustain its volume-weighted average price (VWAP) of $2.7. For the asset to revisit this level, it would need to move decisively above the $2.5 mark first.

Another market observer, CasiTrades, believes XRP could continue rallying once it secures the $2.9 zone. This level would represent a significant breakthrough from current prices.

The coming weeks will be crucial for XRP as the market digests the implications of its inclusion in the US crypto strategic reserve. Traders are watching closely to see if increased user adoption and whale purchases can overcome the apparent selling pressure from profit-taking.