Trump's Endorsement Impacts Ethereum and XRP Prices
The recent cryptocurrency market has seen a significant resurgence, driven by a confluence of political endorsements, economic shifts, and growing institutional interest. President Donald Trump's declaration on Truth Social that crypto is “through the roof” has acted as a potent catalyst, igniting substantial buying pressure across digital asset markets. This timing, coupled with unprecedented dollar weakness, has created an environment conducive to risk asset appreciation, with institutional investors interpreting these developments as a signal of continued monetary accommodation. Furthermore, Trump's proposed 300-basis-point interest rate cut has generated massive tailwinds for alternative assets, leading to the dollar's worst performance since 1973, with the Dollar Index falling 10.1% year-to-date. While such aggressive monetary intervention in a growing economy could push inflation above 5% and further devalue the dollar, it has undeniably propelled capital flight into cryptocurrencies, with over $1 billion allocated to crypto treasuries by corporations this week alone, as companies seek protection from currency debasement. This institutional revolution, combined with retail “Fear Of Missing Out” (FOMO), is fostering sustained buying pressure.
Amidst this bullish backdrop, Ripple’s XRP has achieved a notable milestone with its inclusion in Donald Trump’s Truth Social platform's newly filed Crypto Blue Chip ETF. This ETF, designed to track prominent cryptocurrencies such as Bitcoin, Ethereum, Solana, and Cronos, now features XRP, positioning it within an elite group of digital assets. Following this announcement, XRP's price surged by 6% within 24 hours, currently trading at $2.57, opening the door for a potential rally towards $2.67 and beyond. The cryptocurrency's breakout from a major resistance zone between $2.31 and $2.36 indicates a significant shift from its prolonged sideways movement, suggesting a stronger rally is imminent. Technical indicators are overwhelmingly bullish, with short-term hurdles around $2.44, and the next important resistance between $2.60 and $2.65. On the downside, the former resistance zone of $2.31 to $2.36 is expected to act as robust support. XRP's inclusion in the ETF underscores its appeal due to its high-speed transactions and low fees. Currently in the midst of a “third wave rally,” a phase known for strong upward movements, XRP could potentially eye longer-term targets of $3.30, $5.00, and even higher, up to $9.81, under very bullish market conditions. In the short term, maintaining prices above key support levels of $2.25–$2.36 is crucial for sustaining the bullish trend. The price prediction for XRP now largely depends on two key catalysts: the U.S. SEC's appeal decision regarding its regulatory status and the growing momentum for multi-crypto ETFs, with regulatory clarity in the United States being paramount for XRP's future growth. The ETF's strategic portfolio allocation reflects the increasing interest in such cryptocurrencies and could pave the way for wider adoption and investment in XRP.
Ethereum has also displayed remarkable strength, surging past the $3,000 mark for the first time in 2025, reaching $3,020.86. This milestone represents a substantial recovery from its April low of $1,794, benefiting significantly from Bitcoin's explosive rally to new all-time highs above $117,000. Despite a volatile journey through 2025, including a decline from January's $3,298 to the April low, Ethereum's recent breakout aligns with a broader market surge. Technical analysis confirms a strong bullish breakout pattern, with Ethereum decisively breaking above the Ichimoku cloud resistance and reclaiming the psychological $3,000 level. This shift from bearish to bullish momentum establishes $2,950-$3,050 as a critical support zone after the breakout. Ascending projections for Ethereum target $3,600, $4,200, and $4,800. From a weekly perspective, analysts note a clean reclamation of the $2,200 resistance with minimal pullbacks, suggesting strong buying pressure across all timeframes and long-term projections potentially extending towards $10,000 based on historical bull market patterns. Ethereum typically outperforms Bitcoin in percentage terms during parabolic phases, and with Bitcoin's continued ascent, the next major target for Ethereum is the historical cycle high of $4,000. While potential risks include failing to hold above the $2,800-$2,900 support, which could indicate a false breakout, current momentum and institutional participation strongly suggest a continued upward trajectory towards $3,600-$4,200 in the near term, with the possibility of reaching $4,000+ if Bitcoin's momentum is sustained.
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