On Sunday, the President posted a tweet on his social media platform Truth Social where he provided a list of the assets that could make it to the national stockpile. Apart from XRP, the list included Solana (SOL) and Cardano (ADA) while, in a subsequent tweet, Trump also mentioned Bitcoin (BTC) and Ethereum (ETH) as likely candidates.
Trading volumes for most crypto assets exploded, but mostly for those that were mentioned. In the past 24 hours, XRP’s trading activity has surged by 605% and will likely accelerate with the beginning of the American trading session.
Yesterday’s uptick pushed the yearly performance of XRP once again to positive territory and managed to reverse the downtrend prompted by the Bybit hack on February 21.
Currently, the native asset of the Ripple network is the best-performing crypto of the top 5, with annual gains of 29.7%.
The project’s legal victories against the United States Securities and Exchange Commission (SEC) and a new pro-crypto administration have helped boost the price of XRP.
Trump’s mention of the token is a huge pad in the back to Ripple as well, as it provides further evidence that US-based blockchain companies will benefit the most from the President’s supportive policies for the sector.
This weekend’s rally has managed to reverse XRP’s downtrend as the price surged above its prior lower high from February 14.
Momentum indicators have also sent buy signals, as the Relative Strength Index (RSI) crossed above the signal line while the MACD’s histogram moved to positive territory.
The token’s former upper trend line is now acting as support for today’s pullback. Considering the significant buying pressure that XRP experienced in the past day, this kind of retreat would be expected, as early buyers take some profits off the table.
As long as this trend line support holds, the odds favor the continuation of this uptrend, as both the price action and momentum indicators have confirmed a bullish outlook.
Moving to the hourly chart, we can see how the price action bounced off this trend line support already, while momentum indicators are showing early signs of a trend reversal as well.
If the Relative Strength Index (RSI) moves above the signal line in the hourly chart, this would confirm a bullish outlook for what remains of the American session as well while negative momentum indicators are also steadily decreasing, meaning that selling pressure is subsiding.
Using today’s session low as the stop price and the latest lower high as a short-term target for XRP, the risk-reward ratio stands at 2.
The $3 area is the toughest resistance that XRP must overcome to rise to a fresh all-time high in the next few days. Trump’s crypto reserve announcement may have provided a short-term boost to the token, but the macroeconomic landscape is still unfavorable.
Traders will likely weigh how this announcement could change the narrative for cryptocurrencies after weeks of heavy selling.
The Federal Reserve’s hawkish stance on interest rates is still the most influential factor impacting the market’s outlook and sentiment. Meanwhile, sentiment readings are at their lowest as indicated by the Fear and Greed Index.
However, this weekend’s sharp increase has managed to shift sentiment dramatically as the index jumped from a record low of 20 to 39 in less than 48 hours.
Alejandro Arrieche specializes in drafting news articles that incorporate technical analysis for traders and possesses in-depth knowledge of value investing and fundamental analysis