TLDR

• XRP fell 2% to $2.53 after Trump’s digital asset stockpile announcement disappointed investors
• The government will only add to the stockpile through criminal and civil forfeiture, not direct purchases
• Bitcoin gets special treatment with its own strategic reserve and potential for additional acquisition
• XRP has surged 384% over the past six months despite recent decline
• Analysts remain optimistic with bold price predictions of potential 700% rally to $9.70 or even $27

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XRP prices have taken a downward turn following President Donald Trump’s executive order establishing a digital asset stockpile. The cryptocurrency dropped to $2.53, marking a decline of more than 2% over a 24-hour period according to CoinDesk data.

The executive order was initially viewed as a positive catalyst for several cryptocurrencies. Trump had previously mentioned that XRP, Solana, and Cardano would be included in the stockpile, generating optimism in the market.

However, the White House crypto czar clarified an important detail that dampened enthusiasm. The government plans to populate the stockpile only with assets obtained through criminal and civil forfeiture proceedings.

This means no additional purchases will be made specifically for the stockpile. This revelation disappointed investors who had hoped for direct government buying to support prices.

The impact was felt across multiple cryptocurrencies. Ethereum fell 3.5% to $2,189, while Solana dropped 4% to $143.05.

Bitcoin, on the other hand, received preferential treatment in the executive order. The leading cryptocurrency will have its own strategic reserve, separate from the broader digital asset stockpile.

While Bitcoin’s reserve will also be initially capitalized using forfeited proceeds, there’s a key difference. The Treasury and Commerce secretaries are authorized to develop budget-neutral strategies for acquiring additional Bitcoin.

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Another provision prohibits the government from selling any Bitcoin deposited in the reserve. This creates a one-way flow that could support Bitcoin’s price over time.

Danny Scott, CEO of exchange CoinCorner, described this as “massively positive for Bitcoin.” He noted that it represents “a step toward global differentiation” for the original cryptocurrency.

For altcoins like XRP, the news was less favorable. Their inclusion in the stockpile doesn’t come with the same acquisition provisions as Bitcoin.

Despite the recent price drop, XRP has performed remarkably well over a longer timeframe. The cryptocurrency has surged 384% over the past six months.

Analysts Remain Optimistic

Some market analysts remain optimistic about XRP’s future prospects. EGRAG CRYPTO, a well-known analyst, has identified two potential price targets based on historical patterns.

The first target is $9.70, derived from a triangle breakout pattern analysis. The analyst suggests that investors consider taking profits gradually at $8, $9, and $10 rather than waiting for an exact peak.

A more ambitious second target places XRP at $27. This projection is based on XRP’s performance during the 2017-2018 bull run, when it surged by 718% from a breakout point.

Ali Martinez, another crypto expert, notes that XRP is currently consolidating within a symmetrical triangle pattern. A breakout from this formation could trigger a 23% price move.

XRP whale activity has been increasing over the past three weeks. This indicates growing participation in the XRP network, though it could reflect both buying and selling pressure.

Several factors continue to influence market sentiment around XRP. These include anticipation over the conclusion of the Ripple vs SEC lawsuit and speculation about a potential XRP ETF in the US.

XRP has shown strength against top cryptocurrencies like Bitcoin and Ethereum in recent weeks. This performance suggests growing market confidence in the asset despite short-term price fluctuations.

As of the most recent data, XRP was trading at $2.35, down 6% with trading volume decreased by 13% to $8 billion. The cryptocurrency’s Futures Open Interest also fell 4% to $3.37 billion.