XRP News: XRP’s Rally Cut Short: Unraveling the Sudden Price Crash

Following the crypto reserve announcement made by Trump, the cryptocurrency backed by Ripple, XRP, gained substantially. The Trump remarks indicated that, along with Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA), XRP will be part of the proposed U.S. strategic cryptocurrency reserve.

However, XRP lost momentum thereafter, and as such, the price plunged by over 13%. At the time of this report, XRP trades at $2.31, a 13.24% drop in the last 24 hours. 

Whale Sell-Off Triggers Price Drop

Market analysts attribute the massive falls of XRP to substantial sell-offs by institutional investors or “whales”. According to crypto analyst Miles Deutscher, XRP has seen all-time high levels of offloading of major holders. The whip-whirling appears to be part of the larger market cycle where whales liquidate their holdings after they settle with considerable price surges.

Deutscher highlighted that XRP had already gained around 500% since November 2024, following Trump’s victory and the resignation of ex-SEC Chairman Gary Gensler. 

Market Impact and Investor Sentiment

Sell-offs of this magnitude are those that tend to create somersaults, triggering panic with subsequent exit from the market by the smaller investors. XRP’s price is being pushed downward because of this distribution phase, whereby the major holders interested in selling are causing uncertainty and volatility. 

While some investors remain optimistic about XRP’s long-term prospects, the sharp correction has left many questioning the feasibility of Trump’s proposed crypto reserve. The lack of clarity surrounding the reserve’s implementation has added to market uncertainties.

Doubts Over Trump’s Crypto Reserve Plan

Amid all the initial excitement, skepticism is looming around the feasibility of Trump’s proposed national crypto reserve. Political analysts and financial experts have debated the implications of the government’s involvement in very highly volatile cryptocurrency markets. Critics argue that putting taxpayers’ money into such highly volatile digital assets inherently involves an exceedingly high risk.

Meanwhile, questions remain about the actual workings of the reserve, including whether congressional approval is necessary. Experts debating if the plan moves forward suggest that Bitcoin might take precedence over other altcoins like XRP due to the sheer dominance of BTC in the market.

Looking Ahead: What’s Next for XRP? 

And despite the price moves recently, XRP still stands strong as a front-running currency in its category. Trump’s announcement is significant at a time when there is still great uncertainty surrounding its price path in the near term. There will be considerable market attention in watching the unfolding of events, especially how the changes are received by policymakers and big-money investors.   

XRP is still under pressure for now, but according to both investors and analysts, its long-term outlook is a question up for debate.