XRP at $2.50: Key Reason It Is Not Going Higher

XRP has been trading near the $2.05 mark, but the asset is having trouble breaking through this barrier even with a good setup. Despite the approval of the Strategic Crypto Reserve in the U.S., XRP and the majority of other assets did not profit from the news, while the majority of market participants expected a general surge on the market. This sluggish response is primarily due to the strategic reserve's lack of physical purchases. The approval of the reserve does not immediately result in demand for assets like XRP, in contrast to an institutional investment or ETF approval. Rather than improving market liquidity, it merely recognizes the significance of digital assets in the larger financial system.  Chart by TradingView">The long-term implications are still bullish, even though this might appear to be a lost chance for a breakout. Both institutional and individual investors are now more interested in cryptocurrencies as a result of the announcement, which has strengthened their legitimacy. An influx of funds into the cryptocurrency market tends to raise prices over time, even in the absence of direct purchases.XRP is presently testing the $2.50 level from a technical standpoint, but it does not have the momentum to break through. The asset will require substantial volume to overcome the resistance at $2.69, which is still a crucial barrier. The inability to maintain higher levels recently points to a dearth of aggressive buyers at this point. On the down side, the 50-day EMA marks XRP's strong support at $2.30. Should this level remain stable, the asset might try to push back toward $3. A decline below $2.30, however, would expose XRP to more significant corrections and perhaps a retesting of the $2.00 mark. XRP is currently in a consolidation phase, and it is unclear where it will go in the near future. Investors should keep an eye out for further accumulation around important support zones until a clear break above $2.69 indicates renewed bullish momentum.