XRP Price Analysis

XRP price has lost momentum since November 2024, entering a technical bear market after a 25% decline from its yearly high.

On Friday, Ripple (XRP) retreated to $2.50 as crypto investors await the upcoming White House summit. This event will reveal Donald Trump’s strategy for a potential crypto reserve, involving various coins, including XRP. Trump indicated his preference for Bitcoin (BTC), Ethereum (ETH), Ripple, Solana (SOL), and Cardano (ADA) but only signed off on a Strategic Bitcoin Reserve recently.

Analysts are skeptical about a Strategic XRP Reserve, with a Polymarket poll suggesting only a 29% chance. Willy Woo, a well-known analyst, criticized the idea, emphasizing that Bitcoin is the only asset geopolitically neutral like gold. He questioned which countries would buy US-controlled XRP if needed.

Tyler Winklevoss also suggested that XRP and altcoins like SOL and ADA do not qualify as strategic reserves, asserting that only Bitcoin meets this criterion currently.

Moreover, whether Congress will approve an XRP reserve is uncertain, requiring Trump to secure majorities in both the House and Senate.

Positively, the odds for SEC approval of a spot ETF for XRP are high, nearing 80% on Polymarket. Additionally, there are indications that the SEC might conclude its litigation against Ripple Labs, following precedents set with other companies.

XRP Price Technical Analysis

The daily chart indicates XRP peaked at $3.4162 in January, suffering a 25% drop to $2.50. The price has fallen below the 23.6% Fibonacci Retracement level at $2.7315.

XRP is currently at the 50-day moving average, forming a head-and-shoulders pattern with a head at $3.4162 and shoulders around $3. The neckline sits at $2.

This pattern suggests a potential bearish breakdown, with sellers eyeing a target at the 61.8% retracement level of $1.6215, a decline of 35% from the current position. A drop below this could indicate further decline to $1.1340, representing a 55% decrease.

Disclosure: This article does not constitute investment advice. The materials and content here are for educational purposes only.