XRP’s price witnessed a notable surge on May 8, climbing 7.50% to hit an intraday high of $2.27. This spike comes amid a broader risk-on sentiment following former President Donald Trump’s teaser of a major trade deal with the United Kingdom. The deal, aimed at reducing tariffs on cars and steel, appears to have emboldened investors, fueling optimism across markets, including cryptocurrencies.
Trump’s Trade Tease Spurs Market Optimism
In a move that sent ripples through financial markets, Trump announced via social media a forthcoming trade agreement with a “big, highly respected country” — later revealed to involve the UK. This announcement comes at a time when markets are sensitive to geopolitical shifts, and the hint of reduced tariffs has been welcomed with open arms. The S&P 500 futures reflected this sentiment, rising by approximately 1.50% ahead of the U.S. market open, a development that buoyed the crypto market, notably XRP. This mirrors the broader market trends, as detailed in Bitcoin Traders Eye Breakout to New Highs as Trump Says Tariff Deals Progressing.
XRP’s 52-week correlation with the S&P 500 index has seen a steady increase since November 2024, suggesting that macroeconomic factors are increasingly influential in its price movements. As of May 8, this correlation stood at 0.54, down from a year-to-date peak of 0.74, indicating a strong, albeit slightly waning, interconnection with traditional financial markets.
Whale Accumulation and Technical Breakthroughs
While geopolitical developments played their part, XRP’s ascent is also underpinned by significant whale activity. Data from Glassnode reveals a consistent increase in addresses holding at least 10,000 XRP tokens. This accumulation trend, persisting even during price pullbacks, suggests that larger holders are betting on future gains.
Adding fuel to the fire, XRP broke through a key resistance trendline that has capped its progress since January 2025. This breakout is part of a larger falling wedge pattern, a bullish reversal setup that many chartists view optimistically. Analyst Mags has predicted a potential 30% rally toward $2.80, with the possibility of further gains to $3.66 if the breakout holds.
“XRP’s breakout above the upper trendline is a significant technical event,” noted market analyst DOM. “Maintaining support above $2.20 is crucial to sustaining this momentum.”
Looking Ahead: Risks and Rewards
Despite the positive outlook, some caution is warranted. A slip below $2.20 could trigger a retreat toward the 200-day exponential moving average, currently around $2.00. Moreover, a fall below the wedge’s lower trendline — approximately between $1.80 and $1.85 — would invalidate the bullish reversal pattern, raising the specter of further declines.
Yet, the current environment is rife with optimism. The ongoing Ripple SEC lawsuit, combined with speculation around a potential spot ETF, adds layers of intrigue to XRP’s trajectory. Such factors could stoke further whale accumulation, reinforcing confidence among XRP’s wealthiest investors. This aligns with the broader crypto market recovery, as noted in Crypto Rebounds From Early Declines Alongside Reversal in U.S. Stocks.
While the immediate future looks promising, questions linger about the sustainability of this rally. Can XRP maintain its upward trajectory amid potential market volatility and regulatory hurdles? Only time will tell, but for now, XRP enthusiasts have reasons to celebrate.
Source
This article is based on: Why is XRP price up today?
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
