Key Points
- XRP price has entered a technical bear market after a 25% drop from its peak this year.
- Analysts are doubtful about the creation of a Strategic XRP Reserve in the US.
XRP price has seen a significant downturn since its high in November 2024. It has plunged into a technical bear market, with a 25% fall from its highest point this year.
XRP Price and the Crypto Summit
On Friday, Ripple (XRP) fell to $2.5 as crypto investors anticipated the forthcoming crypto summit at the White House. This event is expected to provide insights into Donald Trump’s strategy for a strategic crypto reserve and potential coins for inclusion.
In a statement released on Sunday, Trump hinted that his preferred coins might be Bitcoin (BTC), Ethereum (ETH), Ripple, Solana (SOL), and Cardano (ADA). However, only a Strategic Bitcoin Reserve was confirmed on Thursday.
Analysts’ Views on XRP
Analysts have expressed skepticism about the possibility of the US establishing a Strategic XRP Reserve. A Polymarket poll with approximately $450,000 in assets has predicted the chances of this happening at a mere 29%.
Willy Woo, a well-known analyst with over a million followers, recently argued against the idea of a Strategic XRP Reserve. He suggested that no other country would purchase a US-controlled XRP, stating Bitcoin is the only geopolitically neutral asset akin to gold.
Other analysts, including Tyler Winklevoss, voiced similar concerns, stating that XRP and other altcoins like SOL and ADA did not meet the criteria for a reserve. According to Winklevoss, a reserve asset needs to be a proven store of value, much like gold.
Furthermore, it remains uncertain whether a divided Congress would approve the creation of an XRP reserve. For this to happen, Trump would need a majority vote in the House of Representatives and 60 votes in the Senate.
Positive Aspects for XRP Price
On the brighter side, the likelihood of the Securities and Exchange Commission approving a spot ETF for XRP is high, with the odds jumping to nearly 80% on Polymarket. There are also chances that the SEC will conclude its litigation against Ripple Labs, as it has done with other companies like Uniswap, Coinbase, and Gemini.
XRP Price Technical Analysis
The daily chart indicates that the XRP price, which peaked at $3.4162 in January, has plummeted by 25% to the current $2.50. It has slipped below the 23.6% Fibonacci Retracement level at $2.7315.
XRP has reached the 50-day moving average and has formed a head and shoulders chart pattern. This pattern includes a head at $3.4162 and shoulders around $3, with the pattern’s neckline at $2.
As a result, the coin is likely to experience a significant bearish breakdown as sellers aim for the 61.8% retracement at $1.6215, down by 35% from the current level. A fall below that level could indicate further decline to $1.1340, the 78.6% retracement level, which is 55% below the current level.
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