This week, the XRP price in the cryptocurrency market experienced fluctuations that prevented it from breaking the $3 threshold. The initial plans by President Trump to include XRP in a strategic crypto reserve led to an increase, but skepticism from organizations like JPMorgan and macroeconomic uncertainties caused the gains to halve. Currently, XRP is stabilizing around $2.40 and faces a significant test with a market cap of $140 billion.
The reason why the increase in the XRP price has not been sustainable is due to several factors. Trump’s announcement to classify XRP alongside Bitcoin and Ethereum as strategic reserve assets caused a sudden 40% spike on Monday. However, yesterday’s U.S. Non-Farm Payroll (NFP) data revealed rising unemployment and inflation concerns, which dampened risk appetite. Additionally, investors starting to take profit at the $3 level contributed to the decline in the altcoin’s price to $2.40.
Technical indicators also suggest a pause in the upward trend of XRP. On the 12-hour chart, a retreat near the upper boundary of the Donchian Channel ($2.99) has been observed, and there has been a decline in the MACD histogram. Analysts point out that $2.47 is a critical support level, and if there is a sustained breakdown below this level, it could potentially pull XRP down to $1.95.
JPMorgan’s Global Market Strategy Director, Nikolaos Panigirtzoglou, stated that the probability of the U.S. Congress approving small cryptocurrencies, including XRP, as reserve assets is below 50%. He mentioned that the volatility of assets other than Bitcoin and Ethereum, along with regulatory concerns, makes it challenging for XRP to be included. Panigirtzoglou also highlighted the hurdles XRP faces in achieving its $200 billion goal, pointing out that similar reserve plans have failed in states like Montana, North Dakota, and Wyoming. Investors believe that reaching a target of $3.20 for the altcoin may only be possible with increased volume.
