The anticipation surrounding Donald Trump’s inauguration generated significant excitement within the XRP community, with many speculating a post-inauguration price surge. Investors were optimistic that the new administration would bring favorable regulatory policies, driving XRP and other digital assets to new highs.
XRP experienced a rally leading up to the inauguration, with its price climbing steadily amid increased activity by large investors. According to data shared by Ali (@ali_charts) from Santiment, whales purchased over 100 million XRP in the 48 hours before January 20.
However, the rally failed to sustain momentum. Following the inauguration, XRP’s price plummeted, declining by 4.82% within a day to trade at $3.13, as shown by data from CoinMarketCap.
XRP daily chart | Source: coinmarketcap
This decline mirrored a broader pullback in the cryptocurrency market, with meme coins, including the TRUMP and MELANIA tokens, experiencing even sharper declines as the meme sector dropped approximately 15% by January 21.
The sell-off indicates that the market may have overestimated the potential impact of the inauguration on cryptocurrency valuations.
Also Read: 100 Million XRP Shifted in 48 Hours, What Happened?
Profit-Taking Fuels XRP’s Post-Rally Decline
The post-inauguration dip in XRP’s price suggests that many investors capitalized on the pre-inauguration rally to lock in profits. Short-term traders likely contributed to the sell-off, leading to a sharp decline in price despite strong whale activity before January 20.
XRP’s market cap now stands at $180.08 billion, while its 24-hour trading volume has dropped by 23%, signaling reduced market enthusiasm. The volatility reflects the cyclical nature of speculative markets, where surges often lead to rapid profit-taking, particularly after high-profile events like the inauguration.
What Lies Ahead for XRP?
Despite the current dip, XRP holds the potential for recovery in the coming months, with speculation about the launch of an XRP Exchange-Traded Fund (ETF) fueling optimism among investors as it could attract significant institutional interest.
Additionally, the recent leadership change at the SEC may pave the way for more favorable regulatory policies. Acting Chair Mark Uyeda’s stance on innovation and more precise guidelines for cryptocurrencies could provide the clarity the market has long awaited.
Another critical factor is the ongoing Ripple vs. SEC case, which investors are closely monitoring with hopes that it may be dismissed under the new administration. A favorable outcome would boost XRP’s price and solidify its standing within the cryptocurrency market.
As XRP navigates this transitional period, its future hinges on regulatory developments, market dynamics, and the resolution of its legal battles. While short-term volatility may persist, the coin’s long-term outlook remains tied to critical milestones that could redefine its trajectory.
Also Read: Expert Who Predicted XRP to $3 Now Predicts $15 Next, See Chart
