XRP News: Trump’s Crypto Reserve Triggers 30% XRP Pump, followed by 10% Dump

The initiative, which would include XRP alongside Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA), has fueled speculation about increased institutional adoption and regulatory shifts in the cryptocurrency landscape.

Trump made the announcement via Truth Social, outlining his ambition to position the U.S. as the “Crypto Capital of the World.” He also pledged to reverse what he called the “Biden administration’s war on crypto,” a sentiment that has resonated with digital asset investors. The market reacted swiftly, sending XRP soaring to multi-year highs.

Following Trump’s announcement, XRP rallied to $3.00 before it ran into resistance. The token was just shy of $2.50 before the uptick, with both retail and institutional buying. Market analysts have pointed out robust levels of support at $2.75, with predictions indicating a probable surge to $3.50 should the bull trend persist.

XRP price surged 16.17% in a single day on March 3. Source: XRP Liquid Index (XRPLX) via Brave New Coin

The immediate reaction to Trump’s crypto stance reflects how regulatory certainty—or even the potential for it—can mean a lot in the market,” crypto analyst Aayush Jindal explained. “XRP is shattering key levels, and sustained buying pressure might take it even higher.

Trades have experienced a volcano-style eruption in terms of trading volume, with Binance alone facilitating more than 250 million XRP trades in a single 24-hour period. Growing interest signals greater confidence in the potential for XRP to be part of the proposed crypto reserve.

XRP has since shed all of the gains as the entire market corrected on Monday, as the crypto reserve news faded and prices drifted down again.

The XRP price dropped 17% overnight. Source: XRP Liquid Index (XRPLX) via Brave New Coin

While Trump’s announcement has been celebrated within crypto circles, not everyone is convinced. Critics, including investor Jason Calacanis, argue that the proposal could lead to unnecessary government intervention and market manipulation.

“It’s a terrible idea to spend taxpayer money buying crypto assets, especially those held by wealthy donors,” Calacanis commented, raising ethical concerns over the motivations behind the initiative.

Accusations have been made that Trump is favoring crypto donors over Bitcoin in his policies and crypto reserve plan. Source: ZacG via X

Others warn that government involvement in cryptocurrency could undermine its decentralized ethos. Should the reserve initiative face political or legal roadblocks, digital assets like XRP may experience increased volatility.

Compounding the intrigue is Ripple’s ongoing court battle with the U.S. Securities and Exchange Commission (SEC). Legal commentator Jeremy Hogan recently talked about the challenges Ripple faces in overturning a court injunction prohibiting its direct XRP sales.

Jeremy Hogan suggests that Ripple’s case settlement is likely delayed due to an injunction in Judge Torres’ ruling. Source: Jeremy Hogan via X

The SEC and Ripple may see eye to eye on a few things, but getting an injunction lifted is not simple,” Hogan added. “Ripple needs to present a strong argument to get the court to reverse its decision.”.

Despite the optimism, analysts caution that XRP’s rally remains highly speculative. Any political or legal hurdles surrounding Trump’s crypto reserve plan could trigger a sharp correction.

XRP has rebounded into the bullish pattern, fueled by Trump’s executive order on a national crypto reserve. Cryptoontje on TradingView

Still, XRP remains one of the most closely watched assets in the market. With major regulatory and political developments on the horizon, the coming months could be crucial in determining whether XRP will solidify its position as a key player in the next era of digital finance.