XRP Price Prediction: Trump's Crypto Reserve Order Ignites Market Hopes Despite Recent Pullback

Despite a recent pullback, with XRP currently trading around $2.19 after a 21.56% drop over the past week

Optimism towards a potential breakout of XRP price builds on two fronts: the possibility of a resolution in the Ripple (XRP) case and Donald Trump’s crypto market-impacting proposals.

What Happened: After a recent pullback, XRP price is currently trading at $2.19, marking a 21.56% decrease over the past seven days.

On March 2, Trump made a strong promise for a US Crypto Reserve, which he said would make the industry stronger after what he called “corrupt attacks by the Biden administration.”

Trump’s executive order instructed the Presidential Working Group to proceed with the Strategic Crypto Reserve. The reserve would include XRP, Solana (SOL), and Cardano (ADA), in addition to Bitcoin and Ether.

At first glance, the announcement of Trump’s crypto reserve brought excitement. However, the actual details of the reserve brought disappointment to investors.

Instead of purchasing new tokens, the reserve was established to utilize cryptocurrencies already held by the US government, primarily those seized in crime cases. This lack of new demand contributed to a sharp sell-off in XRP. The token experienced a 5.52% crash in a single day, as indicated by CoinMarketCap data.

See More: Trump’s Executive Order Sparks 5.52% Plunge In XRP Price

Why Is This Important: With the focus shifting to Biden’s administration and the role of the Securities and Exchange Commission, there have been updates in the case against Ripple.

The SEC, led by acting Chair Mark Uyeda, has recently paused several high-profile cases. These include lawsuits against Coinbase, Consensys, Kraken, OpenSea, Uniswap, and Yuga Labs.

However, the case against Ripple is still ongoing, which might be attributed to the precedent set by Judge Analisa Torres’s ruling in July 2023.

Now that the SEC is not pursuing an aggressive approach, there is a possibility that Ripple could soon reach a favorable settlement with the SEC, or they might witness a decision that provides clarity on the legal status of XRP. Such a development would likely have a significant impact on XRP price, potentially causing a surge.

In the short term, XRP price trends indicate bearish activity, but key technical indicators suggest potential support levels for the token.

Examining the daily chart, the Relative Strength Index (RSI) stands at 42.91, indicating that sellers have the upper hand and the line is displaying increasing selling pressure.

XRP price is also approaching the lower Bollinger Band, currently at $1.98, which has acted as a support level in the past.

This suggests that XRP price could rebound if buyers become more engaged. However, the 20-day Exponential Moving Average (EMA) is providing resistance for XRP at $2.41.