XRP surged dramatically on Sunday after President Donald Trump mentioned the cryptocurrency as a potential addition to the country's strategic reserve. The token jumped to $3, reaching a level not seen in weeks.
The rally proved short-lived. XRP's value quickly declined to $2.20 before partially recovering to $2.65 by late Wednesday.
Trump's executive order, released Thursday, focused exclusively on Bitcoin. The document made no mention of XRP or other cryptocurrencies previously referenced by the president.
The news triggered an immediate 9% price drop for XRP, pushing the value down to $2.37. The token has since rebounded slightly to $2.50.
Analytics firm CryptoQuant issued a warning about market conditions. The company noted open interest for XRP has increased by over 5.5% in a brief period, suggesting price movements "fueled by leverage."
"Open interest for XRP is up 5.63%, signaling a price move fueled by leverage. Elevated risk in the market. Leverage cuts both ways—stay sharp," CryptoQuant posted on social media Thursday.
The firm cautioned that XRP could experience "wild" price fluctuations and advised traders to implement risk management strategies.
Despite ongoing uncertainty surrounding the U.S. crypto reserve, many analysts remain bullish on XRP. Some predict the token will soon break its 2018 all-time high of $3.40 as recorded by CoinGecko. More aggressive forecasts suggest potential price targets in double or even triple-digit territory.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.
