XRP Faces Potential 55% Price Drop Due to Strategic Reserve Concerns
XRP has dropped 25% recently, currently valued at $2.5, amid skepticism about a Strategic XRP Reserve. Polls indicate only a 29% chance of such a reserve being established. Analysts express doubt about XRP’s geopolitical relevance compared to Bitcoin. However, chances of an SEC-approved spot ETF are improving, with approval odds near 80%.
XRP has recently experienced a downturn, losing momentum since its peak in November 2024, resulting in a significant 25% decline. As of Friday, the cryptocurrency was valued at $2.5. Investors are closely monitoring an upcoming crypto summit at the White House, which will discuss former President Donald Trump’s plans for a strategic crypto reserve and potential cryptocurrency inclusion. Trump has suggested that Bitcoin, Ethereum, Ripple, Solana, and Cardano could be considered for this reserve, although only a Strategic Bitcoin Reserve has been formally established.
There is growing skepticism regarding the establishment of a Strategic XRP Reserve in the U.S., as indicated by a recent Polymarket poll assigning a mere 29% probability to this initiative. Analyst Willy Woo has expressed concerns, arguing that a U.S.-controlled XRP would lack international appeal, while highlighting Bitcoin’s status as a geopolitically neutral asset. Other market commentators, such as Tyler Winklevoss, contend that XRP and similar altcoins do not qualify as reserves due to their inability to function as hard money or established stores of value like gold.
The prospect of creating an XRP reserve faces additional political hurdles since it would require bipartisan support from Congress, particularly a majority in the House and 60 votes in the Senate. Despite these challenges, XRP’s outlook is somewhat brighter in relation to the Securities and Exchange Commission (SEC)’s potential approval of a spot ETF, with approval odds reportedly soaring to nearly 80%. There is also speculation surrounding the SEC possibly concluding its litigation with Ripple Labs, similarly to recent resolutions with other entities such as Uniswap and Coinbase.
In summary, while XRP currently faces significant downward pressure and skepticism regarding the establishment of a Strategic XRP Reserve, there remain positive indicators, particularly with respect to the SEC’s potential actions. A keen observance of both market sentiment and regulatory developments will be critical in determining XRP’s trajectory in the near future.
Original Source: crypto.news
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