Ripple (XRP) price momentum has stalled below the $3 threshold after a volatile trading this week driven by conflicting market catalysts. While Trump’s proposal to include XRP in a U.S. strategic crypto reserve initially ignited a price rally, macroeconomic headwinds and skepticism from key financial institutions have cut gains in half
XRP Bulls Struggle to Hold Gains Amid Conflicting Catalysts
XRP price grazed the $3 mark on Monday as rallying 40% after Trump included XRP in the Crypto strategic reserver assets last weekend. However, traders digested multiple market-moving developments this week, those gains have been halved.
Trump’s push to establish a cryptocurrency strategic reserve, with XRP included alongside Bitcoin and Ethereum, Solana, and Cardano generated strong initial momentum at the start of the week. Further optimism came from the easing of tariffs imposed on Mexico and Canada, boosting broader market sentiment.
However, XRP bulls faced resistance as macroeconomic uncertainties dampened risk appetite. The latest U.S. Non-Farm Payroll (NFP) report revealed rising unemployment, fueling concerns about persistent inflation and a potentially more hawkish Federal Reserve. As a result, profit-taking emerged near the $3 mark, halting the upside breakout and forcing consolidation around $2.40.
The rejection at $3 suggests traders remain wary of overextending bullish positions amid policy uncertainty. Liquidity remains a key factor, with leveraged long positions likely facing liquidations if XRP fails to hold critical support levels.
JPMorgan Director Casts Doubt on Strategic Crypto Reserve Approval for Ripple
At press time on March 8, Ripple price was trading at $2.40, with a market capitalization of approximately $140 billion. Bull traders anticipate that a break above $3 could push XRP’s market cap toward $200 billion, especially if U.S. Treasury actions align with Trump’s strategic reserve proposal.
However, JPMorgan’s latest report has thrown cold water on Ripple’s ambitious valuation target, highlighting significant hurdles in gaining congressional approval for a U.S. strategic crypto reserve. According to Nikolaos Panigirtzoglou, managing director of global market strategy at JPMorgan, the probability of such a reserve materializing remains below 50%.
“We don’t believe an approval of a U.S. strategic crypto reserve is the most likely scenario (assuming congressional approval would be needed). So the chance is less than 50% in our mind. And if a U.S. strategic crypto reserve is eventually approved, it would be difficult to include smaller tokens outside Bitcoin and Ethereum, as the inclusion of such tokens would raise more concerns about risk and volatility”
– Nikolaos Panigirtzoglou, Maanaging director of global market strategy at JPMorgan
The report further noted that similar state-level Bitcoin reserve proposals have recently failed in Montana, North Dakota, South Dakota, and Wyoming due to concerns over volatility and regulatory hurdles.
Skepticsm around approval of Trump’s crypto strategic reserve plan added to the bearish sentiment keeping XRP price below the $2.50 mark on the daily candle. As traders await further clarity, XRP’s technical structure suggests a pivotal battle ahead.
XRP Price Forecast: Bulls Eye $3, But Rejection Looms Amid Profit-Taking
XRP price is showing early signs of bullish exhaustion after failing to hold above $2.60, suggesting a potential retest of lower support levels. The 12-hour chart highlights a clear rejection near $2.99, coinciding with the upper Donchian Channel boundary, signaling strong resistance. Despite the recent breakout, the inability to sustain momentum above this zone raises the likelihood of profit-taking, particularly with the latest 5.84% decline.
The MACD histogram, while still in positive territory, has begun fading, hinting at waning bullish momentum. The MACD line remains above the signal line, supporting a bullish case, but the narrowing gap suggests that if selling pressure persists, bears could regain control. Key support is forming near $2.47, aligned with the midline of the Donchian Channel. A decisive break below this level would expose $2.39, a critical pivot where bulls must step in to prevent a slide toward $1.95.
Conversely, if XRP price holds above $2.47 and volume picks up, a renewed push toward $2.99 is likely, with $3.20 as the next bullish target. Leverage traders appear active, making sharp wicks and liquidity hunts a key risk in both directions.
Frequently Asked Questions (FAQs)
XRP must reclaim $2.99 with strong volume to sustain a breakout. Failure to hold support at $2.47 could lead to a deeper pullback.
of XRP in the proposed strategic crypto reserve initially fueled a rally, but skepticism from institutions has tempered gains.
Resistance stands at $2.99 and $3.20, while support is at $2.47 and $2.39. A drop below could expose $1.95.
ibrahim
Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/xrp-price-forecast-jp-morgan-director-faults-ripples-200b-valuation-target/
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