Trump crypto strategic reserve coins ‘ADA, XRP, SOL’ dump, Bitcoin follows

Cryptocurrency traders were in for a pleasant surprise on March 2 after US President Donald Trump announced a crypto strategic reserve to include Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). The news triggered huge buying, with Bitcoin rising from about $85,000 to $95,000 and Cardano galloping more than 72%. The remaining altcoins also saw a strong rally.

However, Nansen principal research analyst Aurelie Barthere said that establishing a US crypto reserve will take time as it needs a vote in Congress. Research analyst Nicolai Sondergaard from the same blockchain analytics firm told Cointelegraph that the tokens selected for the crypto reserve are likely to witness volatility.

Prior to Trump’s announcement, the sentiment in the cryptocurrency sector remained negative. CoinShares reported $2.9 billion in outflows from cryptocurrency exchange-traded products last week. That marked the third consecutive week of outflows after a 19-week inflow streak.

After the initial reaction of short covering and buying by traders, will the rally continue? Let’s look at the charts to determine their support and resistance levels.

Bitcoin price analysis

Bitcoin fell below the 20-week exponential moving average ($90,623) last week and dipped near the 50-week simple moving average ($75,534), but the long tail on the candlestick shows solid buying at lower levels.

The upsloping moving averages indicate an advantage to buyers, but the negative divergence on the relative strength index (RSI) suggests that the bullish momentum is weakening. If the price slips and maintains below the 20-week EMA, it will signal the start of a corrective phase that could reach the 50-week SMA.

Contrarily, if the price remains above the 20-week EMA, it will indicate that the sentiment remains positive, and traders continue to buy the dips. That improves the prospects of a retest of the all-time high at $109,588. A break above $109,588 could start the next leg of the uptrend to $138,000.

The BTC/USDT pair rose above the 20-day EMA on March 2, but the bulls could not sustain the higher levels. The $90,000 to $85,000 zone is likely to attract solid buying by the bulls. If the price rebounds off the support zone, it will increase the likelihood of a rally above $100,000. 

This positive view will be invalidated if the price continues lower and breaks below the support zone. That will indicate the bears are in control. The pair may tumble to $78,258 and then to $73,777.

Ether price analysis

Ether has been range-bound between $2,111 and $4,094 for the past several weeks, indicating buying near the support and selling close to the resistance.

Both moving averages have started to turn down, and the RSI is in the negative territory, suggesting that bears have an edge. If the price continues lower and breaks below $2,111, it will signal the start of a deeper correction to $1,500.

On the contrary, a strong rebound of $2,111 suggests that the bulls are aggressively defending the level. Buyers will have to propel the ETH/USDT pair above the moving averages to signal a comeback. The pair may then ascend to $4,094, which is likely to act as a strong barrier.

The pair bounced off the $2,111 support and reached the 20-day EMA ($2,544) on March 2. The failure to pierce the 20-day EMA suggests that the bears are selling on rallies. Sellers will again try to sink the pair below $2,111. If they manage to do that, the pair risks falling to $1,500.

Buyers will have to kick the price above the downtrend line to signal a comeback. The pair may then attempt a rally to $3,400 and subsequently to $3,750.

XRP price analysis

XRP has been struggling to sustain above $3, signaling that the bears are fiercely defending the level.

The upsloping 20-week EMA ($2.18) and the RSI in the positive zone suggest that buyers have the edge. The bulls will have to push and maintain the price above $3 to indicate the start of the next leg of the uptrend toward $4 and then $5.

This optimistic view will be negated if the price turns down and breaks below the 20-week EMA. There is strong support at $2, but if the level breaks down, it will signal the start of a deeper correction to $1.50.

The bulls pushed the pair above the $2.84 resistance on March 2 but are struggling to hold on to the breakout. The pair has dropped to the 20-day EMA ($2.50), which is an important support to watch out for. If the price rebounds off the 20-day EMA, the bulls will again try to push the pair to $3.40. A break above this resistance could start the next leg of the uptrend to $5.

Conversely, a break and close below the 20-day EMA…