- XRP’s price jumped from $2.00 to over $2.93 after Trump’s announcement, with volume hitting a record 19.1 billion XRP.
- A whale closed a short position and added 8M USDC in margin to avoid liquidation, signaling a sharp shift in market sentiment.
Ripple [XRP] witnessed a massive price spike following an unexpected announcement from President Donald Trump on the 2nd of March.
The U.S. government revealed plans to establish a crypto reserve, with XRP set to be a key component.
This led to an immediate bullish reaction, pushing it to multi-month highs.
The surge also triggered a major whale reaction, with one large trader rushing to close an XRP short position and adding 8 million USDC in margin to avoid liquidation.
With its price now at a pivotal level, traders are watching closely to see if the bullish momentum continues.
XRP’s price reaction to Trump’s Crypto Reserve plan
Following the announcement, XRP saw a rapid increase in price, jumping from $2.00 to over $2.93 in a single trading session before experiencing some retracement.
The spike meant that it saw a 29% increase in the last trading session. The 12-hour price chart reflects this massive volatility, showing heightened buying pressure and increased volume.
Source: TradingView
As of this writing, XRP was trading at $2.81, reflecting a 4.27% pullback from its peak. Despite this, it remains well above previous resistance levels, suggesting the potential for further gains if momentum persists.
Where can XRP go next?
A detailed look at Fibonacci retracement and extension levels provides insight into possible price targets.
The chart indicated that XRP had cleared major resistance near $2.50, which was now acting as support.
If the bullish trend continues, the next key level is $3.00, a psychological resistance point. A close above this could trigger another wave of buying.
Source: TradingView
The 1.618 Fibonacci extension level at $3.38 marks another critical zone for price discovery. If momentum remains strong, $3.83 emerges as an extended resistance level, where profit-taking may intensify.
If a retracement occurs, the $2.50–$2.60 range serves as a crucial support zone. A deeper correction could push XRP toward $2.15, where additional buying interest may emerge.
Trading volume, whale activity: Bullish or cautious?
The trading volume chart confirmed a historic spike in XRP activity following Trump’s announcement. Volume surged to over 19.1 billion XRP, signaling immense buying interest.
This level of trading activity suggests that the market is absorbing the news with conviction, increasing the chances of continued price appreciation.
Source: Santiment
Large-scale whale movements further emphasize the market shift.
A major trader closed their short position and injected 8M USDC in margin to avoid liquidation, indicating how unexpected the surge was for those positioned bearishly.
Is XRP set for more gains?
XRP’s explosive rally following the U.S. crypto reserve announcement has reignited interest in the asset.
The sharp increase in trading volume, combined with whale repositioning, suggests that XRP could maintain its bullish structure if key resistance levels are breached.
Traders should keep an eye on the $3.00 resistance level for signs of further breakouts. If momentum slows, a retracement toward $2.50 is possible, where strong support has been established.
With XRP now at the center of U.S. government discussions, continued volatility is expected in the coming days.
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