Trump’s XRP Endorsement Sparks Political and Crypto Debate

The cryptocurrency market has been buzzing with activity following a surprising report that former President Donald Trump’s administration is considering adding the crypto token XRP to the U.S. strategic reserves.

According to a draft policy document leaked by administration officials, the move is being driven by bipartisan support for integrating digital assets into the U.S. economic framework. However, the proposal has sparked debate among legal and regulatory experts, who question the timing and feasibility of such an addition.

According to sources familiar with the endorsement incident, Trump may have been misinformed by advisors or pro-XRP influencers who promoted the token as being backed by the government.

“This could be an example of how misinformation in the crypto space can sway even the most powerful figures,” said one analyst, adding that several pro-XRP influencers had been actively lobbying administration officials to include the token in the strategic reserves.

The report has also stirred controversy in political circles, with some critics arguing that Trump is not fully aware of the ongoing legal complexities facing Ripple (the company behind XRP). The SEC lawsuit against Ripple remains unresolved, even after a partial settlement was reached with the agency.

While Trump’s support could be bullish for the XRP price, it has also triggered concerns among regulatory bodies, who may complicate Ripple’s standing with compliance institutions.

As the dust settles on a weekend of surprising price movements, XRP is showing signs of stabilization following a steep drop. According to the latest data from LunarCrush, social sentiment towards XRP has decreased, while the Fear and Greed Index has slipped from 78 to 63.

The decrease in the Fear and Greed Index may be related to the recent profit-taking activity observed in the XRP market. After repeatedly testing the $2.50 resistance level in recent weeks, the price was met with strong selling pressure.

According to data from Atomic Wallet, this led to a massive $360 million exit from the XRP trading market in a 24-hour period. The broader Ripple market also saw a shift in sentiment, with traders and institutions becoming more cautious following the news of XRP being included in a draft policy document related to U.S. strategic reserves.

“The legal system doesn’t react well to political noise, especially when it includes unresolved litigation,” said a compliance expert, adding that several legal-risk-sensitive trading desks decreased their exposure to XRP following the report.

Moreover, regulatory bodies reportedly reopened due diligence reviews concerning XRP’s legal profile after the news broke. This move could further delay the resolution of the SEC lawsuit against Ripple, which had already been a major point of contention among traders and investors.

Just days before the Trump incident, Ripple finalized a $50 million settlement in one aspect of its long-running battle with the SEC. The announcement briefly placed Ripple XRP news in the bullish spotlight, with traders speculating that regulatory clarity was around the corner.

However, the latest developments may have reignited fears around SEC Ripple scrutiny. As speculation mounted that lobbying efforts had influenced the policy drafts, XRP lawsuit news re-entered public discourse. According to Capitol Hill insiders, the inclusion of XRP in the strategic reserve draft was “premature” and not aligned with the current U.S. regulatory frameworks.

This entanglement with politics might also complicate the resolution of the XRP lawsuit, which had been a subject of heated debate among traders and analysts. Some fear that the political fallout could extend the timeline for regulatory resolution and invite further investigations.

Despite the turbulence, XRP has managed to hold its critical support level at $2.36. This zone coincides with the midline of the Keltner Channel, a technical indicator used to track momentum and volatility. Maintaining this support is crucial for preserving XRP’s broader bullish structure since late April.

If XRP’s price breakout follows the symmetrical triangle pattern, it could target $15. Source: Ali Martinez via X

“Buyers still have control above $2.36, but losing this level could invite a sharp correction toward $2.09,” warned technical analyst Amitrading on Monday. If XRP price rebounds, the upper Keltner Channel around $2.47 and the psychological $2.50 barrier will be the next major targets.

Data from LunarCrush and CFGI.io shows a dip in social sentiment and the Fear and Greed Index, which dropped from 78 to 63, suggesting that traders are growing cautious. Weekly RSI has also declined from overbought territory, signaling loss of momentum.

In the derivatives market, traders appear to be bracing for further volatility. Open Interest on major exchanges like Binance and Deribit dropped 4.7% over the weekend, reflecting reduced leveraged exposure. Meanwhile, the funding rate on perpetual futures has normalized to neutral levels, down from the positive premium seen last week.

“Without a new catalyst, XRP may consolidate below $2.40 or even test lower support zones,” said derivatives strategist Mark Matthews. If the XRP price prediction holds and bulls defend