NOIDA (CoinChapter.com)—President Donald Trump announced the establishment of a U.S. Crypto Strategic Reserve, including XRP, Cardano (ADA), and Solana (SOL). The announcement boosted investor confidence and fuelled speculation about institutional adoption.
Following the announcement, XRP surged nearly 34%, reaching a high of $3.0018—its highest level in more than 4 weeks. Moreover, the price rally came amid broader market recovery after a sharp downturn triggered by Bitcoin’s fall below $90,000.
The crypto market had suffered heavy liquidations, causing panic before stabilizing on renewed optimism driven by Trump’s strategic reserve plan.
Trump’s Crypto Strategic Reserve and Its Ripple Effect
Including XRP in the U.S. Crypto Strategic Reserve marks a noteworthy moment for the asset. Trump’s announcement underscores the growing recognition of cryptocurrencies in national financial strategies. The initiative aims to solidify the country’s digital asset holdings, which Trump framed as critical for economic security and global competitiveness.
This move also overshadows the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse welcomed the news, suggesting it could expedite the lawsuit’s resolution.
The Ripple CEO also took the opportunity to criticize the Biden administration’s SEC policies, particularly referencing former SEC official Bill Hinman’s stance on digital assets. Garlinghouse expressed optimism that the decision signals a shift away from the regulatory uncertainty that has plagued XRP.
Critics, including Bitcoin advocate Peter Schiff, have questioned XRP’s inclusion, arguing that only Bitcoin should be part of such reserves. Meanwhile, Cardano founder Charles Hoskinson defended the decision, citing XRP’s established role in financial transactions.
The market awaits further details about a White House crypto summit scheduled for March 7. There is also speculation that the announcement could accelerate the approval of an XRP-focused exchange-traded fund (ETF), which would mark another step toward institutional legitimacy.
XRP Price Drops After Crypto Reserve Spike
XRP saw a sharp rejection after testing the resistance near $3, the rally resulting from the U.S. strategic reserve announcement. However, profit booking resulted in the Ripple token dropping 9% on March 3, bringing the price down to $2.6 at the time of writing.
Despite the pullback, XRP remains above a key support region near $2.42, which has previously acted as a strong demand zone.
A sustained hold above $2.42 could provide the base for another attempt to break resistance. If bulls push XRP beyond $2.84, the next major resistance stands near $3.25, corresponding with the 0.618 Fibonacci level. A successful breakout could see XRP testing $3.84, which aligns with the 0.786 Fib retracement and is the last major hurdle before a push toward $4.60.
On the downside, failure to hold $2.42 may extend the correction toward $1.94, aligning with the 200-day EMA (green) and the 0.236 Fibonacci level. Further weakness could open the door for a drop to $1.09, the start of the previous rally.
The Relative Strength Index (RSI) at 53.97 indicates neutral momentum, suggesting neither overbought nor oversold conditions.
