Ripple Investors Beware: Key Warning as XRP Rebounds From 8% Drop

TL;DRRecall the massive wave to the upside that XRP experienced on Sunday when US President Donald Trump namedropped the asset, alongside a few others, to be potentially included in the country’s strategic crypto reserve. Ripple’s cross-border token exploded by double-digits andtapped$3 for the first time in a few weeks.However, the momentum was short-lived, and XRP quickly dropped to $2.2. Nevertheless, it had recovered some ground and stood at $2.65 late last night ahead ofTrump’s executive orderthat says the country will focus solely on Bitcoin, but it failed to mention any other cryptocurrency.XRP’s price tumbled by 9% immediately, going down to $2.37 before it bounced off to its current level of $2.5.At the same time, CryptoQuant warned that the open interest for the third-largest digital asset has increased by over 5.5% within a short timeframe, which suggests a price move ‘fueled by leverage.’ The analytics firm added that XRP’s upcoming price movements could be ‘wild’ and advised traders to manage their risk.Open interest for XRP is up 5.63%, signaling a price move fueled by leverage. Elevated risk in the market.Leverage cuts both ways—stay sharp. pic.twitter.com/OQ53hl7W5k— CryptoQuant.com (@cryptoquant_com) March 6, 2025The controversy around the US crypto reserve continues but many analysts believe that XRP’s price could be poised for a massive rally and it’s only a matter of time before it breaks its 2018 all-time high of $3.4 (according to CoinGecko). Some went even further, predicting outrageous price surges that could drive XRP’s price to double- and even triple-digit territory.