---
title: "XRP price may crash 55% if strategic crypto reserve inclusion fails"
url: https://diffcoin.com/xrp-price-may-crash-55-if-strategic-crypto-reserve-inclusion-fails/
description: "XRP price has formed a head and shoulders pattern pointing to more downside if Donald Trump fails to create a strategic XRP reserve"
published: 2025-03-07
updated: 2025-03-07
author: "Mila"
site: "Diffcoin"
---

# XRP price may crash 55% if strategic crypto reserve inclusion fails

XRP price has lost the momentum it had in November 2024 and has moved into a technical bear market after falling by 25% from the highest point this year.

Ripple (XRP) retreated to $2.5 on Friday as crypto investors waited for the upcoming crypto summit at the White House.

This summit will shed light on Donald Trump’s plan for a strategic crypto reserve and the potential coins to be included. In a statement on Sunday, he hinted that his preferred coins would be Bitcoin (BTC), Ethereum (ETH), Ripple, Solana (SOL), and Cardano (ADA). However, he only signed for a Strategic Bitcoin Reserve on Thursday.

Analysts are pessimistic that the US will create a Strategic XRP Reserve. A Polymarket poll with about $450,000 in assets has placed these odds at just 29%.

In a recent statement, Willy Woo, a popular analyst with over 1 million X followers, argued that having a Strategic XRP Reserve was a bad idea. He argued that no other country would buy a US-controlled XRP and that Bitcoin was the only geopolitically neutral asset like gold.

> Dear CEO of XRP, living in the US, tell me which countries would buy US-controlled XRP if the strategic reserve needed to be put to work.
> 
> BTC is a geopolitically neutral asset like Gold. You’re gaslighting people into thinking XRP is a strategic reserve asset.
> 
> — Willy Woo (@woonomic) [January 29, 2025](https://twitter.com/woonomic/status/1884396736984318299?ref_src=twsrc%5Etfw)

Other analysts, including Tyler Winklevoss, argued that XRP and other altcoins like SOL and ADA did not meet the criteria for a reserve. He added that an asset needed to be hard money that is a proven store of value like gold.

> I have nothing against XRP, SOL, or ADA but I do not think they are suitable for a Strategic Reserve. Only one digital asset in the world right now meets the bar and that digital asset is bitcoin.
> 
> Many of these assets are listed for trading on [@Gemini](https://twitter.com/Gemini?ref_src=twsrc%5Etfw) and meet our rigorous… [pic.twitter.com/q32qlaFDKJ](https://t.co/q32qlaFDKJ)
> 
> — Tyler Winklevoss (@tyler) [March 3, 2025](https://twitter.com/tyler/status/1896598516723577210?ref_src=twsrc%5Etfw)

Further, it is unclear whether a divided Congress would approve creating an XRP reserve. To do that, Trump would need a majority of votes in the House of Representatives and 60 in the Senate.

On the positive side for XRP price, the odds that the Securities and Exchange Commission will approve a spot ETF are high. They have jumped to almost 80% on Polymarket. There are also odds that the SEC will end its litigation against Ripple Labs as it has done with other companies like Uniswap, Coinbase, and Gemini.

## XRP price technical analysis

![XRP price](https://crypto.news/app/uploads/2025/03/XRP-Price-1.png)

XRP price chart | Source: crypto.news

The daily chart shows that the XRP price peaked at $3.4162 in January and has crashed by 25% to the current $2.50. It has dropped below the 23.6% Fibonacci Retracement level at $2.7315.

XRP has moved to the 50-day moving average and has formed a head and shoulders chart pattern. This pattern comprises a head at $3.4162 and the shoulders at around $3. The neckline of this pattern at $2.

Therefore, the coin will likely have a strong bearish breakdown as sellers target the 61.8% retracement at $1.6215, down by 35% from the current level. A drop below that level will signal more downside to $1.1340, the 78.6% retracement level, which is 55% below the current level.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

[Source link](https://crypto.news/xrp-price-may-crash-55-if-strategic-crypto-reserve-inclusion-fails/)