Ripple XRP price surges 40% then drops 50% as Trump crypto reserve proposal faces skepticism

Ripple (XRP) price momentum has stalled below the $3 threshold after a volatile trading 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 price grazed the $3 mark on Monday, rallying 40% after Trump included XRP in the Crypto strategic reserve assets last weekend. However, traders digested multiple market-moving developments this week, and 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.

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