XRP Price Soars to $2.58 After Trump’s Crypto Reserve Move—Will It Hit $3?

XRP price surged to a monthly high after President Donald Trump announced that the altcoin would be part of the U.S. crypto strategic reserve.

The news triggered a wave of bullish sentiment, pushing XRP to $2.58 following a 15% gain in 24 hours. With traders speculating on the next move, the big question remains: can XRP sustain its rally and breach the $3 mark?

Trump’s Crypto Endorsement Sends XRP Price on a Bullish Tear

Trump’s decision to include Ripple in the country’s crypto reserves ignited a strong reaction in the market. XRP’s rapid rise saw it briefly overtake Tether (USDT) in market cap, reclaiming its position as the third-largest cryptocurrency.

After the announcement, XRP also surpassed Ethereum (ETH) in fully diluted valuation (FDV), fueling speculation about institutional adoption under Trump’s crypto-friendly stance.

“This is what crypto has been waiting for,” The  Kobeissi Letter  reacted to the development.

Meanwhile, XRP’s inclusion in the national reserve has already impacted Polymarket odds, with the probability of an official XRP reserve increasing by over 20%.

Adding to the bullish narrative, Ripple CEO Brad Garlinghouse confirmed his attendance at the upcoming White House Crypto Summit later this week. The event is expected to bring key regulatory discussions to the forefront, potentially providing more clarity on XRP’s position in the U.S. financial system. As traders anticipate the summit’s impact, buying pressure on XRP continues to build.

Whale Moves Raise Insider Trading Suspicions

Adding to the intrigue, some market watchers suspect insider trading following Trump’s announcement. A whale reportedly took a massive 50x long position on Bitcoin and Ethereum, turning a $4 million bet into a $200 million position. The trade coincided perfectly with Trump’s post about the U.S. Crypto Reserve.

“His move? Coinciding perfectly with Trump’s Truth Social post announcing a U.S. Crypto Reserve. If the market had dipped even slightly, he would’ve been liquidated.” — @WiseCrypto_

The trader has since closed most of the position, cashing out $6.8 million in profit. If the market had moved even slightly against him, he would have faced liquidation. The precision of this trade raises questions about whether certain investors had prior knowledge of Trump’s announcement.

XRP Faces Supply Shock as 400M Tokens Unlocked from Escrow

While the bullish news has sent XRP soaring, the massive 400 million XRP unlocked from escrow adds an unexpected twist. The transaction, valued at over $1.12 billion, has sparked fears of potential market dumps.

Historically, large escrow unlocks have led to short-term price volatility, with XRP experiencing dips before regaining momentum. However, with Trump’s announcement driving optimism and derivatives data showing a spike in short liquidations, bulls appear to have the upper hand.

XRP Liquidations. Source: Coinglass

According to Coinglass, XRP short liquidations reached $45 million in the past 24 hours, marking the highest level in six months. If the trend continues, forced buybacks from liquidated short positions could propel XRP even higher, possibly past $3.

Can XRP Price Smash $3 and Reach a New All-Time High?

The current rally has pushed XRP to the third-largest crypto by market cap, surpassing Tether (USDT). Some analysts believe that if bullish momentum continues, XRP could reclaim its previous all-time high of $3.84.

XRP/USDT 1-day Chart. Source: Carl Moon/X

Crypto analyst Carl Moon pointed out that XRP has broken out of a descending triangle pattern, a bullish technical indicator. He argues that XRP could rally by another 47%, pushing prices toward $3.80 in the short term.

“XRP has officially broken out above resistance. Bears are losing control.” — @CarlMoon

Further fueling speculation, Ripple CEO Brad Garlinghouse confirmed his attendance at the White House Crypto Summit later this week. Traders are anticipating that new regulatory discussions could provide an additional boost to XRP’s price.

The massive escrow unlock and potential whale sell-offs could trigger volatility, and a failure to sustain gains might lead to a sharp retracement.