XRP Drops 3% After Trump's Stablecoin Call
2min read Ripple (XRP) experienced a decline below the $2.40 mark on Friday, dropping 3% from the $2.6 weekly peak recorded after U.S. President Donald Trump's appearance at the Digital Asset Summit on Thursday. Market indicators suggest that XRP traders are anticipating potential gains from accelerated adoption of Ripple's RLUSD stablecoin, following Trump's call for stablecoin legislation.
Recent developments between Ripple and U.S. regulators have renewed investor interest in XRP. This narrative was reinforced on Thursday when Trump advocated for a stablecoin regulatory framework during his speech at the Digital Asset Summit. Additionally, the U.S. Securities and Exchange Commission (SEC) dropped all charges against Ripple, marking the end of a five-year litigation. These two bullish catalysts drove XRP to new 10-day peaks around $2.6 before profit-taking led to a 3% pullback, settling around the $2.39 level at press time.
Trump's stablecoin legislation aims to establish a structured regulatory framework for fiat-backed assets quoted in reference to the USD or backed by U.S. treasuries. Within the XRP community, Trump's speech has sparked speculation that Ripple's RLUSD could benefit from the resulting regulatory clarity. If the bill provides clear operational guidelines for issuers, it could drive capital inflows into XRP, strengthening its role in cross-border payments and liquidity solutions. Ripple, already a key player in cross-border payments with partnerships, could see accelerated demand for its RLUSD stablecoin if Trump's policies clear regulatory barriers to institutional participation.
Ask Aime: What is the outlook for Ripple's stablecoin RLUSD after the SEC's decision to drop charges against it?
At press time, XRP is testing a key resistance level at $2.40, with the 20-day Exponential Moving Average (EMA) at $2.37 providing immediate support. The 50-day EMA at $2.43 poses a crucial bearish hurdle. A sustained close above the $2.43 level could signal renewed bullish momentum, potentially rallying toward the $2.70 zone. However, with trading volumes trending flat, bulls lack the momentum to push for major rallies within the current market dynamics. The Relative Strength Index (RSI) Divergence Indicator stands at 50.37, indicating a neutral stance where neither buyers nor sellers hold a clear advantage. This reinforces the likelihood of continued range-bound movement unless another decisive catalyst emerges.
On the downside, failure to break above $2.40 may trigger downside risks, extending the correction phases toward $2.30. Should this bearish scenario play out, XRP price could potentially retest the $1.90 support level. The longer lower shadow on the price chart suggests that bull traders are actively working to prevent a close below $2.40, likely to avoid major liquidations. According to analysts' forecasts, if the legislation provides regulatory clarity, it could boost institutional confidence in Ripple's RLUSD, driving capital inflows into XRP. XRP must hold above $2.40 to maintain bullish momentum. A break below could trigger consolidation, while resistance remains at $2.70. Profit-taking following regulatory optimism and Trump's pro-crypto speech led to a 3% pullback, with XRP now testing key support levels.
