The cryptocurrency market is abuzz with speculation following former U.S. President Donald Trump’s recent proposal to establish a “Crypto Strategic Reserve” — a federal initiative that could include major digital assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA). While the announcement initially sparked a rally across crypto markets, XRP has since pulled back, showing signs of a bearish correction. Adding fuel to the uncertainty, Coinbase CEO Brian Armstrong publicly stated that Bitcoin alone would be the “best option” for such a reserve, reinforcing BTC’s dominant narrative in institutional adoption.
This evolving landscape raises important questions: Why is XRP falling despite high-level political attention? What does Armstrong’s endorsement of Bitcoin mean for altcoins like XRP? And how do Ripple’s ongoing developments influence long-term sentiment?
Coinbase CEO Backs Bitcoin-Only Crypto Reserve
Brian Armstrong’s comments, shared via social media and widely reported by The Block, suggest a preference for simplicity and clarity in any government-backed crypto initiative.
“Just Bitcoin would probably be the best option — simplest, and clear story as successor to gold,” Armstrong wrote.
His stance emphasizes Bitcoin’s role as digital gold — a store of value with proven security, decentralization, and brand recognition. By advocating for a Bitcoin-only reserve, Armstrong avoids the complexities of asset allocation, regulatory scrutiny on other tokens, and potential bias toward specific projects.
He did acknowledge alternative approaches:
“If folks wanted more variety, you could do a market cap-weighted index of crypto assets to keep it unbiased. But probably option #1 is easiest.”
This positions Bitcoin not just as a preferred asset, but as the most politically and technically viable candidate for national crypto reserves — a view gaining traction among institutional voices.
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Market Reaction: XRP Faces Technical Pressure
Despite Trump’s broad inclusion of XRP in the proposed reserve, the token’s price action tells a different story. On the H1 (one-hour) chart, XRP/USD formed a double top near $3.00**, signaling strong selling pressure after an initial rally. The price subsequently dropped, finding temporary support at **$2.57000.
Traders are now watching closely to see if this level holds as a double bottom formation — a bullish reversal pattern that could attract buyers and spark a recovery. However, a break below $2.57000 may trigger further downside momentum, with the next critical level being a key bullish trendline that has supported price in previous cycles.
Key Technical Levels:
- Resistance: $3.00 (double top)
- Support: $2.57000 (potential double bottom)
- Breakdown Risk: Below $2.57000 targets trendline support
While macro news drives headlines, technical traders are focused on these levels — and so far, sentiment remains cautious.
Strategic Moves by Ripple Signal Long-Term Confidence
Amid short-term volatility, Ripple continues building real-world utility for XRP and its ecosystem. Recent developments highlight growing institutional trust and global expansion:
- South Korea’s BDACS adopted Ripple Custody to secure XRP and RLUSD (Ripple’s dollar-pegged stablecoin), targeting institutional clients needing compliant storage solutions.
- Partnerships with Revolut and Zero Hash aim to increase RLUSD adoption, positioning it as a competitor to dominant stablecoins like USDT and USDC.
- Integration with Portuguese exchange Unicâmbio enables instant cross-border payments between Portugal and Brazil using digital assets.
- In Japan, banks are expected to adopt the XRP Ledger (XRPL) by 2025 to streamline remittances and currency conversions.
These moves demonstrate Ripple’s focus on practical financial infrastructure — not just speculation.
Legal and Regulatory Outlook
Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) remains a key overhang for XRP investors. The SEC sued Ripple in 2020, claiming XRP was sold as an unregistered security. However, recent developments offer cautious optimism:
- CEO Brad Garlinghouse and CLO Stuart Alderoty attended a private dinner with President-elect Trump in January — fueling speculation about potential regulatory clarity.
- The SEC reassigned Jorge Tenreiro, the official who oversaw the Ripple case, raising questions about future enforcement priorities.
- Ripple CTO David Schwartz publicly defended the decentralization of the XRP Ledger, countering claims that Ripple controls the network.
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FAQ: Understanding XRP’s Current Market Dynamics
Q: Why is XRP falling if it’s included in Trump’s crypto reserve plan?
A: While inclusion generated initial optimism, markets often react more strongly to tangible developments. Without congressional approval or funding, the proposal remains speculative. Meanwhile, technical indicators show profit-taking after the $3.00 resistance level.
Q: Does Coinbase CEO Brian Armstrong’s BTC preference hurt XRP?
A: Indirectly, yes. His endorsement reinforces Bitcoin’s dominance in institutional and policy discussions. Altcoins like XRP may face higher scrutiny or lower priority in official reserves unless they prove unique utility or widespread adoption.
Q: Is XRP considered a security by U.S. regulators?
A: The SEC claims it is, but the case is ongoing. A 2023 court ruling distinguished between institutional and retail sales of XRP, suggesting it may not always qualify as a security. Final determination awaits further legal proceedings.
Q: Can XRP recover if it breaks below $2.57?
A: Yes — but it would likely test deeper support levels first. Strong volume at new lows could indicate accumulation by long-term investors, especially given whale purchases of 520 million XRP during recent dips.
Q: What gives XRP long-term value?
A: Its primary use case is fast, low-cost cross-border payments via the XRP Ledger. Ripple has partnerships with financial institutions worldwide, and growing stablecoin integration (like RLUSD) enhances its role in global settlements.
Q: How does Ripple’s philanthropy affect XRP price?
A: Direct impact is minimal, but positive actions — like donating $100,000 in XRP for wildfire relief — improve public perception and brand trust, which can support long-term adoption.
DeFi Expansion and Institutional Adoption
Beyond payments, Ripple is expanding into decentralized finance (DeFi). A partnership with Chainlink allows RLUSD to be used in Ethereum-based DeFi protocols for lending and trading — bridging traditional finance with Web3 innovation.
Meanwhile, whale activity suggests confidence among large holders. Reports indicate that 520 million XRP were accumulated during a recent price dip, signaling belief in future appreciation.
Final Thoughts: Navigating Hype vs. Fundamentals
The idea of a U.S. Crypto Strategic Reserve captures imagination — but execution remains uncertain. Political announcements can drive short-term rallies, but sustainable growth depends on adoption, regulation, and technical strength.
For XRP, the path forward hinges on three pillars:
- Regulatory resolution with the SEC.
- Global institutional adoption of XRPL for payments.
- Expansion into DeFi and stablecoin ecosystems.
Until then, traders should balance macro headlines with on-chain data and technical patterns.
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