- XRP surges by 8.35%, reclaiming the third spot by market cap at $150.42B amid speculation on U.S. sovereign fund investments.
- Despite a strong rebound, XRP remains bearish, with key support at $2.60. A drop below could lead to further declines.
- Analysts suggest breaking above $3 could trigger bullish momentum, Monitoring resistance and support levels crucial.
The United States is taking a new approach to financial management with the creation of a Sovereign Wealth Fund. Over the weekend, President Donald Trump signed an executive order to establish the fund, aiming to enhance long term economic stability. The announcement has led to discussions on whether digital assets, including XRP, could be part of the fund’s investment strategy.
U.S. Sovereign Fund and Market Speculation
White House Press Secretary Karoline Leavitt confirmed the initiative, stating that the fund will be important in financial planning. While details about its structure are undisclosed, analysts suggest it may include alternative investments such as digital assets.
The potential inclusion of XRP has driven speculation, particularly as the digital asset outperformed the broader market in the past 24 hours. XRP surged by 8.35%, reclaiming its position as the third largest cryptocurrency by market cap at $150.42 billion.
It flipped Tether’s USDT in ranking, indicating growing investor interest. The broader crypto market gained 3.23%, while XRP displayed stronger volatility. Yesterday, XRP fell to $1.77 before rebounding, driven by news related to U.S. tariffs.
XRP Bearish Despite Strong Rebound
XRP is seeing high volatility, with technical indicators showing bearish momentum. The asset opened at $2.70, reaching a high of $2.78 and a low of $2.47. Trading volume is at 303.67 million XRP, indicating active participation.
Bollinger Bands show that XRP is testing the lower band at $2.64 after breaking below the middle SMA at $3.03. This breakdown indicates continued selling pressure. However, a brief dip to $2.47 attracted buying interest, hinting at possible support. The MACD line is below the signal line at -0.0862, while the histogram expands negatively at 0.1132. These indicators suggest increasing downside momentum, showing the need to monitor key price levels.
Analyst on XRP’s Future Trends
Egrag Crypto noted that the asset was through a steep decline, which was anticipated based on prior technical patterns. Following this drop, buying activity increased, helping to stabilize prices. The focus now is on pushing XRP above the $3 mark, which could be the catalyst to the next upward price movement.
The $2.60 support level is important. A break below this, could lead to further declines toward $2.40 or $2.20. On the upside, reclaiming $2.80 could precede a move toward $3 or higher, with bullish sentiment likely strengthening above that level.
