XRP Surges Amid Budget Reform Hype, But Momentum Wavers

XRP showed a strong performance over the weekend as investor enthusiasm surged following U.S. budget reform discussions. The focus keyword XRP gained nearly 7% within 48 hours, briefly rising from $2.08 to a peak of $2.22. The spike was driven by optimism following the Senate’s preliminary approval of the much-talked-about “Big Beautiful Bill,” a significant fiscal proposal aimed at reshaping U.S. spending.

This news triggered a wave of interest across the cryptocurrency market, with XRP leading the charge among large-cap assets. Enthusiasts interpreted the bill as a catalyst for looser monetary policy, which often boosts the appeal of crypto assets. The prospect of increased spending and potential dollar weakening created an ideal short-term setup for digital currencies like XRP.

Despite this bullish start, the rally began to show signs of fatigue. XRP’s upward movement stalled shortly after reaching the $2.22 level, just above a key resistance zone around $2.15. Traders quickly reassessed the situation, realizing that while the Senate has taken one step forward, the bill still has several hurdles to clear before becoming law.

The final vote on the bill is expected next week, as lawmakers attempt to meet a July 4 deadline for legislative progress. Following that, discrepancies between the House and Senate versions of the bill still need to be reconciled. Until then, traders appear hesitant to commit to a breakout, opting to wait for more clarity before pushing XRP higher.

The broader market context also plays a role in this hesitation. A key takeaway from the legislation is that it underscores deeper economic concerns: expanding fiscal deficits and increasing reliance on government intervention. In such cases, assets like XRP may benefit as investors seek alternatives to fiat currencies that appear increasingly unstable amid mounting national debt and inflationary pressures.

Crypto analysts view XRP’s recent movement as a reflection of this macroeconomic tension. The cryptocurrency surged past critical resistance points, which suggests underlying resilience. Still, unless XRP can maintain support above the $2.15 mark, its path forward remains uncertain. Traders will be closely watching whether this level becomes a new floor or if the rally collapses into what technical analysts call a “fakeout.”

The recent surge in XRP activity also coincides with broader interest in hedging strategies. Investors seeking refuge from inflationary pressures and unstable monetary policy often pivot toward crypto assets. From Bitcoin to altcoins like XRP, the shift in sentiment marks a growing preference for decentralized financial tools capable of retaining value in uncertain economic times.

While the budget reform bill has undoubtedly awakened investor interest, whether that enthusiasm sustains depends on the bill’s legislative journey. Any further delay or watering down of the fiscal reforms could strip crypto markets—particularly XRP—of their recent momentum.

Related: Expert Advice: Sell XRP If You’re Confused

In summary, XRP remains in a critical zone. Its short-lived rally highlights the asset’s sensitivity to macroeconomic developments and fiscal policy discussions. Holding above the $2.15 level could set the stage for further upside, especially if investors continue favoring digital assets as hedges against systemic financial risks.