This week, the cryptocurrency market experienced fluctuations that prevented the XRP price from breaking the $3 threshold. Although President Trump’s initial plans to include XRP in a strategic crypto reserve sparked an increase, skepticism from organizations like JPMorgan and macroeconomic uncertainties halved the gains. Currently, XRP stabilizes around $2.40, facing a significant test with a market cap of $140 billion.
Why Has the XRP Price Increase Not Been Sustainable?
Trump’s announcement to classify XRP alongside Bitcoin (BTC) and Ethereum (ETH) as strategic reserve assets led to a sudden 40% spike on Monday. However, yesterday’s U.S. Non-Farm Payroll (NFP) data revealed rising unemployment and inflation concerns, dampening risk appetite. Investors beginning to take profit at the $3 level set the stage for altcoin’s decline to $2.40.
Technical indicators also signal a pause in the upward trend. On the 12-hour chart, a retreat near the Donchian Channel’s upper boundary ($2.99) has been observed, while a decline in the MACD histogram draws attention. Analysts note that $2.47 is a critical support level; a sustained breakdown below this could pull XRP down to $1.95.
JPMorgan: Strategic Reserve Approval for XRP is Challenging
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 indicated that the volatility of assets other than Bitcoin and Ethereum, along with regulatory concerns, makes inclusion difficult. Panigirtzoglou reminded that similar reserve plans have failed in states like Montana, North Dakota, and Wyoming, highlighting the hurdles XRP faces in achieving its $200 billion goal. Investors stress that reaching a $3.20 target for the altcoin may only be possible with increased volume.