XRP Takes a Bull Breather After Donald Trump Sounds Plans for a Strategic Token Reserve

The payments-focused cryptocurrency rallied 25% within hours of Trump's Truth Social post, reaching $3, but has since pulled back to $2.6 at press time.

The price of XRP is pulling back after former U.S. President Donald Trump sounded plans for a strategic token reserve including bitcoin (BTC), ether (ETH), cardano (ADA), solana (SOL), and XRP.

The payments-focused cryptocurrency, advanced 25% within hours of Trump’s Truth Social post on Sunday, at one point climbing to $3. But it has since pulled to $2.6 by Monday. Prices have pulled back to the descending trendline from Jan. 16 highs.

Among technical indicators, the relative strength index (RSI), which measures if price is moving too fast, rose to 70 late Sunday and has retraced to 48 from above-70 or overbought readings observed late Sunday, signaling potential for a renewed move higher.

However, prices remain below the 50-hour SMA ($2.65), signaling weakness, while the broader 200-hour SMA ($2.50) supports that remains intact.

The Moving Average Convergence Divergence hourly chart shows momentum shifts—its line crossing below the signal at $3 (now below zero) confirms a bearish turn following the rally.

Key levels

The 20-hour Bollinger Bands, which set a defined price range, show $2.9 as the upper limit and $2.4 as the lower, and with prices at $2.6 in the middle, it indicates reduced volatility following the earlier spike.

The rally to $3 exhausted buying pressure with RSI at 70 and a MACD crossover, supporting a pullback. The breach of the 50-hour SMA reflects short-term bearish control, but the 200-hour SMA at $2.5 is critical support.

Current price ($2.62) is at a pivot: a break below $2.50 risks further declines, while a move above $2.65 could target the $3 level and above. Momentum favors bears short-term, and speculators could watch volume and a decisive move for further positioning.