XRP surges 34 on Trump reserve talk then plunges 18 in market whiplash
1min read XRP, the cryptocurrency associated with Ripple, has recently been included in the proposed U.S. strategic cryptocurrency reserve, sparking speculation about its potential for significant price increases. However, despite this development, XRP is unlikely to reach price targets of $10, $100, or $1,000 in the near future due to prevailing market conditions and historical trading patterns.
Over the weekend, the cryptocurrency market experienced a surge following remarks from former U.S. President Donald Trump, who suggested a national crypto reserve that could include Bitcoin, Ethereum, XRP, Solana, and Cardano. This announcement triggered a strong rally across major cryptocurrencies, with Bitcoin surpassing $95,000 and XRP experiencing a 34.27% price increase, briefly crossing the $3 mark. However, this upward momentum was short-lived. By Monday, March 3, XRP had dropped by 18.83%, marking its most significant single-day decline since the Terra collapse in May 2022. Bitcoin and other major digital assets also recorded substantial losses, with Bitcoin retreating below $85,000 to trade at approximately $84,211.
The abrupt pullback has raised concerns about potential market manipulation. Some analysts suggest that large market participants, commonly called market makers, often trigger sharp corrections after attracting retail investors during bullish trends. This strategy, they argue, allows them to capitalize on price swings by eliminating weaker hands before resuming an upward trajectory. A similar pattern was observed in October 2024, when CryptoQuant CEO Ki Young Ju compared Bitcoin’s price action to a well-known Korean saying about buses departing only after passengers disembark. The recent price movement reflects this trend, with many traders caught off guard by the rapid reversal.
Financial commentators have long pointed out that volatility in cryptocurrency markets often distinguishes long-term investors from short-term speculators. Vandell Aljarrah, host of the Black Swan Capitalist, recently reinforced this perspective, highlighting how such fluctuations influence market participation.
Despite the optimism surrounding Trump’s proposed reserve, several obstacles could prevent the token from reaching extreme price targets in the short term. While inclusion in a national reserve could enhance its legitimacy and boost investor confidence, significant barriers exist. One major factor is the ongoing legal battle between Ripple and the U.S. Securities and Exchange 