BTC, ETH, XRP Price Prediction: Here’s Why Trump’s Crypto Strategic Reserve Rally Will be Undone

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) prices started the week well after Donald Trump unveiled his plans for a crypto strategic reserve ahead of the upcoming summit on Friday. BTC price rose 2.85%, hitting $93,000, while ETH and XRP prices soared 2% and 5%, tagging $2,365 and $2.65, respectively. As bullish as this announcement is, the news-driven rally will likely come undone as investors realize the process behind setting up a reserve in the United States of America. As a result, enthusiastic traders can expect the impressive 80%+ rallies to be undone soon. 

Crypto Strategic Reserve Rally Faces Legislative Risks

Donald Trump has excited the crypto industry by announcing a strategic crypto reserve. In addition to Bitcoin and Ethereum, this reserve will include other Made in USA coins like Cardano and XRP.

The risk, however, is that Trump cannot create these reserves through an executive order, he will need to work through the House of Representatives, which has the power of the purse. 

The challenge is that, while Republicans control Congress, their majority is narrow. Also, passing such a bill would require 60 votes in the Senate. Commenting on David Sacks statement on the reserves, Arthur Hayes, the founder of BitMEX said:

“Nothing new here. Just words. Let me know when they get congressional approval to borrow money and or revalue the gold price higher. Without that they have no money to buy Bitcoin and shitcoins.”

Other analysts warned that a potential crypto reserve will only have Bitcoin. The argument is that Donald Trump always starts his negotiations with an absurd proposition and then walks it back later. 

Therefore, the ETH, BTC, and XRP price rallies may come undone as the crypto market reflects on the difficulty of passing the reserves. The alternative scenario is where they keep rising ahead of Friday’s Crypto Summit and then fall after that.

BTC, ETH, XRP Price Prediction

So, will the popular cryptocurrencies like BTC, ETH, and XRP crash amid the strategic crypto reserve hype?

ETH Price Technical Analysis

Ethereum price has crashed after peaking at $4,092 on December 16. This was a crucial price since it formed a triple-top pattern there and is now hovering near the neckline at $2,123. ETH price has plunged below the 50-week moving average, while the Average Directional Index (ADX) has risen to 23, signaling that it has a strong momentum. 

Therefore, the ongoing Ethereum price crash may continue even as the strategic crypto reserves hope rise. The next target is at $2,000 followed by $1,500.

BTC Price Technical Analysis

Bitcoin price bounced back to $95,000 after crashing to $78,117 last week. It has failed to move above the 50-day Exponential Moving Average (EMA), a sign that it remains under pressure. 

The coin has also retested the neckline of the double-top pattern at $108,355. A break and retest pattern is a popular bearish continuation sign. Therefore, Bitcoin’s short-term outlook is neutral. More gains will be confirmed if it rallies above $100,000, while a crash to last week’s low at $78,117 cannot be ruled out.

XRP Price Technical Analysis

The daily chart shows that the XRP price bounced back after bottoming at $1.9565 last week. It reached a high of $2.8978, which coincided with the highest swing on December 3. 

XRP has formed a head and shoulders pattern whose right and left shoulders are at $2.89, and whose neckline is at $1.9565. Therefore, there is a risk that the coin will crash, and retest the support at $1.9556. A drop below that level will lead to more downside as it moves to the markdown phase of the Wyckoff Theory.