Ripple [XRP] caught in the fire as U.S. digital reserve plan divides community

• XRP maintained its bullish momentum with the MA cross at 2.5373/1.1871 despite political controversy.
• Trading volume held steady at 23.66M XRP, while the price has formed higher lows since November 2024.

The United States government has taken a significant step toward recognizing digital assets through a recent executive order from President Donald Trump.

However, rather than unifying the cryptocurrency industry, the order has sparked intense debate, with Ripple [XRP] facing particular scrutiny from Bitcoin [BTC] maximalists.

XRP under fire from Bitcoiners

On the 23rd of January, President Trump signed the “Strengthening American Leadership in Digital Financial Technology” executive order, which notably includes provisions for establishing a “strategic crypto reserve.”

However, the term “strategic crypto reserve” has ignited fierce debate within the cryptocurrency community over the past 48 hours.

Bitcoin proponents argue that the language should have explicitly specified a “Strategic Bitcoin Reserve,” excluding all other digital assets from consideration.

Critics have particularly targeted Ripple, alleging that the company influenced the executive order’s wording.

Notable industry figures have weighed in on the controversy. Riot Platforms’ Head of Research, Pierre Rochard, suggested that establishing a Bitcoin reserve faces challenges due to Ripple’s alleged political lobbying efforts.

Messari founder Ryan Selkis also announced plans to educate President Trump about why XRP exemplifies the redundancy of a national crypto reserve. 

Additionally, Bitvolt CEO Nico Moran accused Ripple of actively opposing the US Bitcoin Strategic Reserve initiative while prioritizing corporate interests over national benefit.

How XRP has trended amid controversy

The XRP/USD pair traded at $3.1353 at press time, posting a modest 0.90% increase.

The MA cross between the 50-day (2.5373) and 200-day (1.1871) moving averages maintained a strong bullish structure, with price action consolidating well above both indicators.

Trading volume stood at 23.66M XRP, indicating sustained market interest amid the political controversy.

Source: TradingView

The RSI at 63.93 suggested moderate bullish momentum without reaching overbought territory, while the overall trend structure remains intact despite recent volatility.

Price has established a series of higher lows since November 2024, forming a clear upward channel.

Sentiment analysis and market response

The XRP Weighted Sentiment chart revealed fascinating market psychology during this period.

Notable spikes in sentiment occurred between the 13th to the 29th of November 2024, followed by a significant normalization phase.

The recent political developments have caused only minor sentiment fluctuations, with the metric showing resilience around the neutral zone despite intense social media debates.

Source: Santiment

This sentiment stability contrasts sharply with the vocal criticism from Bitcoin maximalists, suggesting that broader market participants may be taking a more measured view of the situation.

The divergence between social media rhetoric and actual market sentiment indicators points to potential market maturity in processing political developments.

Realistic or not, here’s XRP market cap in BTC’s terms

The combination of stable price action above key moving averages and measured sentiment response indicates that the market has largely absorbed the political controversy without significant disruption to XRP’s technical structure.

This resilience might suggest that institutional and long-term investors are maintaining their positions despite the ongoing debate about crypto reserve composition.