XRP Rockets 20%: Ripple’s $5M Bet on Trump Sparks Market Buzz

XRP has experienced a surge in price, gaining over 20% in the last 24 hours to reach $2.36. This upward movement aligns with several key developments, including Ripple’s reported $5 million XRP donation to former U.S. President Donald Trump’s inaugural committee and broader market dynamics.

Ripple’s $5M Donation and Market Sentiment

Fox Business and other major outlets reported that Ripple plans to donate $5 million in XRP to support Trump’s inaugural committee. This news follows similar donations from crypto giants like Coinbase and Kraken, each reportedly contributing $1 million.

The timing of these donations is noteworthy, as Ripple, Coinbase, and Kraken are all embroiled in legal battles with the U.S. Securities and Exchange Commission (SEC). The prospect of a more crypto-friendly SEC under Trump’s leadership—particularly with Paul Atkins, known for his pro-crypto stance, potentially at the helm—has fueled optimism among XRP investors. Many see these donations as a strategic move by Ripple to align itself with a potentially favorable regulatory environment.

For XRP holders, the donation signals a potential breakthrough in Ripple’s ongoing lawsuit with the SEC, which has heavily influenced XRP’s market performance. The anticipation of a resolution has contributed to the recent price rally.

XRP Technical Analysis: Near-Term Outlook

Support and Reversal Signals

RSI Rebound: On the 4-hour chart, XRP’s Relative Strength Index (RSI) briefly dipped into oversold territory below 30, indicating a potential reversal. This prompted buying activity, driving the price higher.

200-4H EMA Support: XRP found support near its 200-4H exponential moving average (EMA) around $2.00. This level coincides with a historically strong horizontal support zone, reinforcing it as a key accumulation area.

Descending Triangle Pattern

On the daily chart, XRP appears to be forming a descending triangle pattern, a structure typically associated with bearish reversals. The pattern is defined by:

• A falling trendline resistance.
• A horizontal trendline support, currently around $2.00.

If XRP breaks below this horizontal support, the triangle’s maximum height suggests a downside target of $1.77—a 22.5% decline from current levels. Notably, this aligns with XRP’s 50-day EMA, a critical support area.

Bullish Breakout Potential

Conversely, a breakout above the descending triangle’s upper trendline could invalidate the bearish setup. In this scenario, XRP could test its December high of $2.90, potentially triggering a new uptrend.

Broader Market Context

XRP’s rally comes amid heightened volatility in the cryptocurrency market, which has seen sharp sell-offs and recoveries. Ripple’s proactive engagement with political and regulatory stakeholders, combined with technical indicators showing potential support, has bolstered market confidence in XRP.

The broader crypto market remains sensitive to developments surrounding the SEC, regulatory clarity, and macroeconomic factors, including shifting sentiment toward blockchain and digital assets in U.S. policy circles.

Conclusion

XRP’s price momentum is supported by technical factors and market optimism stemming from Ripple’s strategic donation to Trump’s inauguration. While the descending triangle pattern suggests caution with potential downside risks to $1.77, a breakout above $2.36 could pave the way for further gains toward $2.90. Investors should closely monitor key support and resistance levels, as well as regulatory and macroeconomic developments, for clues on XRP’s next move.

Read more about XRP: 

How to buy XRP (XRP)

XRP (XRP) Price Today

How to Stake XRP (XRP)

XRP to USD: Convert Ripple to US Dollar

FAQs

What is the significance of Ripple's $5 million XRP donation to Trump's inaugural committee? Ripple’s $5 million XRP donation is seen as a strategic move to potentially align with a more crypto-friendly regulatory environment. With key figures like Paul Atkins, a known pro-crypto advocate, possibly influencing policy under Trump, this gesture has bolstered optimism within the XRP community, especially amid Ripple’s ongoing legal battle with the SEC.

How does the descending triangle pattern affect XRP’s price outlook? The descending triangle pattern typically indicates a bearish trend. If XRP breaks below the $2.00 support level, the price could drop to $1.77, aligning with its 50-day EMA. However, a breakout above $2.36 could invalidate this pattern, potentially setting the stage for a rally toward $2.90.

Why has XRP gained over 20% in the last 24 hours? XRP’s price surge is fueled by several factors, including optimism around Ripple’s donation to Trump’s committee, which hints at a favorable regulatory shift. Additionally, strong technical indicators, such as RSI rebound and support near the 200-4H EMA, have encouraged buying activity, contributing to the recent rally.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.