XRP Price Decline Following Trump’s Bitcoin Reserve Announcement
Published: March 9, 2025, 03:01 GMT+00:00
On March 8, 2025, XRP experienced a noteworthy decline of 2.50%, extending its losses from the previous day, which saw an 8.23% drop. This slide has seen XRP close at $2.3265, disappointing investors amid broader market concerns. The overall cryptocurrency market also fell, losing 0.49% of its value and reaching a total market capitalization of approximately $2.79 trillion.
Fallout from Trump’s Strategic Bitcoin Reserve Executive Order
The recent decrease in XRP’s value is largely attributed to the reaction to President Donald Trump’s new Executive Order establishing a Strategic Bitcoin Reserve (SBR). This decision has raised concerns among XRP traders regarding ongoing legal uncertainties with the U.S. Securities and Exchange Commission (SEC). Many investors had hoped that a multi-cryptocurrency reserve would pave the way for the SEC to withdraw its appeal in the Ripple case, which involves the regulatory body’s challenge to the earlier ruling on the Programmatic Sales of XRP.
The SEC filed its opening appeal brief on January 15, and since the departure of former SEC Chair Gary Gensler and the appointment of Mark Uyeda as acting Chair, speculation about the potential resolution of the Ripple lawsuit has heightened.
Legal Insights and Market Implications
Pro-crypto lawyer Bill Morgan commented on the implications of Trump’s Bitcoin reserve, emphasizing that the singular focus on Bitcoin could be a strategic error. “The Bitcoin strategic reserve is a great moment for crypto in the US,” he remarked. However, he also noted that it might be more beneficial to adopt a multi-coin strategic reserve from the outset. According to Morgan, this could mitigate risks associated with dependency on Bitcoin alone, especially if other nations opt for a more diversified crypto reserve approach first.
Morgan expressed an optimistic outlook, suggesting that the Trump administration might eventually consider expanding the reserve to include other digital assets. “I am sure the Trump administration and David Sacks will consider this and other factors and risks over time,” he added.
Future Trajectories for XRP
The near-term trajectory for XRP now largely depends on the SEC’s forthcoming appeal strategy and the approval of XRP-spot ETF applications. In a bullish scenario, if the SEC were to withdraw its appeal, XRP could potentially rise above its all-time high of $3.5505. The approval of XRP-spot ETFs could further augment demand, potentially increasing its value toward the $5 mark driven by institutional interest.
Conversely, if the SEC pursues its appeal and denies XRP-spot ETF applications, prices could dip below $1.50, sparking further bearish sentiments.
Current Market Analysis
XRP has experienced two consecutive days of losses, trading beneath the 50-day Exponential Moving Average (EMA) but maintaining a position above the 200-day EMA. This indicates mixed market signals, with bearish trends in the short term juxtaposed against bullish signals for the long term. A successful break above the 50-day EMA could lead traders to target the March 2 high of $3.0153. Should the price fall below the March 4 low of $2.2202, it could push XRP to sub-$2 levels, including the critical support level at $1.9299. Any further decline beneath this level might keep sellers in control, possibly leading to a test of the February 3 low of $1.7024 in more adverse market conditions.
As of now, with a 14-day Relative Strength Index (RSI) reading of 45.45, investors may see XRP approach the $1.9299 support level prior to potentially entering oversold territory.
Conclusion: A Climate of Uncertainty
The outlook for XRP remains clouded by regulatory developments, particularly concerning the SEC’s appeal. Additionally, broader economic variables, such as US tariff policies and Federal Reserve interest rate strategies, could also influence XRP demand.
XRP surged earlier this year to $3.3999 driven by optimism surrounding a potential SEC appeal withdrawal and supportive regulatory stances from the Trump administration. However, fears over escalating US tariffs and a stricter Federal Reserve policy contributed to price declines below $2, where the asset has been working to stabilize.
Market participants are advised to closely monitor SEC actions in the coming weeks, as any announcements regarding the Ripple appeal or XRP-spot ETFs could significantly affect future price movements.
For the latest price forecasts and insights, stay tuned to our cryptocurrency coverage.
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