XRP Drops 1% Despite US Digital Asset Strategy Boost
1min read On March 7, the price of XRP faced a mixed outlook despite significant developments in the digital asset landscape. The U.S. government's new digital asset strategy, which includes the establishment of a Bitcoin reserve and a national stockpile for XRP and other altcoins, was expected to boost the cryptocurrency's value. However, the market reaction was underwhelming, with XRP trading at $2.50, down by more than 1%.
Analysts have been closely monitoring XRP's price movements, noting a significant bearish divergence on the 3-day chart. This divergence, where higher highs in price are not matched by the Relative Strength Index (RSI), indicates weakening bullish momentum. As a result, large price gains in the short term are considered unlikely. XRP is currently facing resistance between $2.65 and $2.80, with potential further sideways movement if it fails to break above this range. If the price drops below $2.25, it could face additional downward pressure, potentially reaching $2. Conversely, a break above $2.80 could see resistance at $3, with more at $3.20.
Despite the bearish signals, some analysts remain optimistic about XRP's potential. One analyst has projected that XRP could surge to as high as $33 within the next 28 days, following a recent 19% surge to $2.70 ahead of the White House Crypto Summit. The bullish momentum has led traders to anticipate a potential rise to $5 if the positive momentum holds post-regulatory discussions. Technical analysis, including the formation of a Golden Cross in the Relative Strength Index (RSI), suggests strong upward momentum and potential price increases as buying pressure intensifies.
Key resistance levels have been identified, with XRP needing to surpass the critical resistance at $3.3999 to confirm further movement beyond the $5 mark. Analysts have noted that XRP has re-entered its consolidation pattern, with a breakout above $2.70 potentially driving a move toward $3.40 and beyond. Fibonacci retracement levels indicate additional support zones at $2.48 and $2.42, suggesting that if XRP holds above these levels, the bullish trend remains intact. A confirmed breakout above $2.70 could accelerate price movement toward the next 