XRP's price decreased by 7.25% on January 18, dropping to $3.05, primarily due to unverified rumors regarding its potential inclusion in a proposed U.S. strategic reserve by President-elect Donald Trump. Earlier in the week, XRP had surged over 45%, reaching $3.40, fueled by bullish market sentiment ahead of the inauguration on January 20. However, the excitement waned following the lack of confirmation for the New York Post's claims. Additionally, reports of a fallout between Trump and Ripple over political donations added to the price decline. The situation was exacerbated by the liquidation of over $17 million in long XRP positions in the derivatives market, as traders were forced to sell, exerting more downward pressure on the price. Analysts noted a bearish divergence in XRP's trading patterns, indicating a potential for further price corrections, with historical trends suggesting significant retracements. The 50-day exponential moving average (EMA) stands at approximately $2.28, indicating substantial support beneath the current price, which could lead to a 30% decline if trends continue.

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