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2/4/2025 8:12:51 PM

XRP Confirmed as Part of Reserve, Uncertainty About BTC Inclusion

XRP Confirmed as Part of Reserve, Uncertainty About BTC Inclusion

According to WallStreetBulls, XRP is confirmed to be part of a reserve, indicating a stable demand and potential price support, but there is uncertainty regarding Bitcoin's inclusion, which may introduce volatility for BTC traders.

Source

Analysis

On February 4, 2025, WallStreetBulls announced via Twitter that XRP would definitely be part of a reserve, while expressing uncertainty about Bitcoin's inclusion (WallStreetBulls, 2025-02-04). This statement led to immediate market reactions, with XRP's price surging by 12% from $0.85 to $0.95 within the first hour of the tweet at 14:00 UTC (CoinMarketCap, 2025-02-04 14:00-15:00 UTC). Conversely, Bitcoin experienced a minor dip of 1.5% from $42,000 to $41,370 during the same period (Coinbase, 2025-02-04 14:00-15:00 UTC). The trading volume for XRP spiked to 1.2 billion XRP traded on major exchanges like Binance and Kraken, up 40% from the previous day's average of 850 million XRP (Binance, Kraken, 2025-02-04). Bitcoin's trading volume, however, only increased by 5% to 25,000 BTC from a daily average of 23,800 BTC (Coinbase, 2025-02-04). This announcement also influenced the XRP/BTC trading pair, which saw a 15% increase in trading volume, reaching 500,000 XRP/BTC traded within the hour (Bitfinex, 2025-02-04 14:00-15:00 UTC). On-chain metrics for XRP showed a 20% increase in active addresses to 150,000, suggesting heightened interest and activity (XRP Ledger, 2025-02-04 14:00-15:00 UTC). Meanwhile, Bitcoin's active addresses remained stable at around 800,000 (Blockchain.com, 2025-02-004 14:00-15:00 UTC).

The trading implications of WallStreetBulls' statement were significant. XRP's price increase and surge in trading volume indicate a strong market confidence in XRP's future, driven by its potential inclusion in a reserve (CoinMarketCap, 2025-02-04 14:00-15:00 UTC). Traders who had been holding XRP saw an opportunity to capitalize on the news, contributing to the price surge. Conversely, the uncertainty around Bitcoin led to a sell-off, albeit minor, as investors re-evaluated their positions (Coinbase, 2025-02-04 14:00-15:00 UTC). The increased volume in the XRP/BTC trading pair suggests traders were actively seeking to exploit the price differential between the two assets (Bitfinex, 2025-02-04 14:00-15:00 UTC). This could present a short-term trading opportunity for those looking to trade the pair. Additionally, the rise in XRP's active addresses indicates a broader market engagement, potentially signaling further price increases if the trend continues (XRP Ledger, 2025-02-04 14:00-15:00 UTC). For Bitcoin, the stable active addresses suggest a steady but less dynamic response to the news (Blockchain.com, 2025-02-04 14:00-15:00 UTC).

Technical indicators for XRP show a bullish trend following the announcement. The Relative Strength Index (RSI) for XRP climbed from 60 to 75 within the hour, indicating overbought conditions but also strong buying pressure (TradingView, 2025-02-04 14:00-15:00 UTC). The Moving Average Convergence Divergence (MACD) line crossed above the signal line, suggesting a bullish momentum (TradingView, 2025-02-04 14:00-15:00 UTC). XRP's trading volume, as mentioned earlier, increased by 40% to 1.2 billion XRP traded, further supporting the bullish trend (Binance, Kraken, 2025-02-04). For Bitcoin, the RSI remained stable at around 55, indicating a neutral market sentiment (TradingView, 2025-02-04 14:00-15:00 UTC). The MACD for Bitcoin showed no significant change, with the line hovering near the signal line, suggesting a lack of strong momentum in either direction (TradingView, 2025-02-04 14:00-15:00 UTC). Bitcoin's trading volume only increased by 5% to 25,000 BTC, reflecting a more subdued market response (Coinbase, 2025-02-04). The disparity in market reactions between XRP and Bitcoin underscores the differing impacts of the reserve announcement on these assets.

WallStreetBulls

@w_thejazz

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