Ripple: XRP Falls Like a House of Cards

Olumide Adesina•Monday, March 3, 2025•2 min read

Ripple-based token pulled back a junk of Sunday’s gain at the start of trading in the American session. The third most valuable crypto asset was down 5% for the day.

Ripple slipping toward $2

After being rejected at roughly $3, the market action formed a double top, signifying that the remittance token bulls had run their course.

The price then fell and bounced at $2.59. The price seems to have found support, and a double bottom may develop. Whales may return if the bullish run trend persists, which could push the token above $2.75

However, if short sellers drag XRP below the $2.5 support line, the bears might take over the altcoin. In that case, a bullish trend line will be important to monitor.

The RSI for XRP hit 85, the highest level since December 2024, indicating strong bullish sentiment, which usually precedes a market correction. The recent price retracement is reflected in XRP’s RSI, above 60 after cooling off from its overbought zone.

The drop from extreme levels may suggest that buying pressure is abating, even though a reading above 60 still indicates bullish momentum.

The crypto token may experience additional consolidation or a more significant pullback if it falls toward the neutral zone.

XRP is still significantly impacted by the regulatory haze surrounding it. The Securities and Exchange Commission (SEC) and Ripple Labs, the company that created XRP, have been involved in a legal dispute for five years. However, Ripple achieved a partial legal victory when a judge decided that XRP was not a security in 2024.

Meanwhile, BitMEX co-founder Arthur Hayes expressed skepticism regarding the Crypto Reserve strategy involving XRP.

He insisted that the announcement is “just words” since neither congressional approval nor funding has been provided for buying digital assets. Trump’s statement portends more discussions regarding digital assets in the US. However, the plan’s implementation is still uncertain.

According to Armstrong, CEO of Coinbase, the simplest course of action would be to restrict the reserve to Bitcoin. Armstrong wrote in an X post that “Just Bitcoin would probably be the best option — simplest, and clear story as successor to gold,” but he was still deciding how to allocate his assets.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.