Analyst Issues Stark Warning: Sell All Your XRP if This Political Event Happens

A Prominent Analyst Flags a Potential Bearish Catalyst for XRP

In the volatile world of cryptocurrency, investors are constantly searching for an edge—signals that might predict the next major market move. A well-known crypto analyst has recently sent a significant warning to the XRP community, outlining a specific political development that they believe should trigger a massive sell-off.

According to the analyst, if the U.S. Congress passes a proposed bill to ban its members from trading stocks, it would be a definitive signal to “sell everything.” This stark advice suggests a potentially severe downturn for XRP and the broader crypto market could follow such a legislative change. But what’s the connection, and what does this mean for your portfolio?

The Congressional Bill That Could Trigger a Crypto Sell-Off

The warning is tied to a legislative effort, championed by figures like Congresswoman Anna Luna, to prohibit lawmakers from trading individual stocks. The rationale behind such a bill is to prevent potential conflicts of interest and the use of non-public information for personal gain—a move reportedly supported by political figures like Donald Trump.

While the bill focuses on stocks, the analyst implies a significant domino effect for digital assets. The core concern is that a ban on stock trading for lawmakers could pave the way for a similar, or even more stringent, ban on them trading cryptocurrencies like XRP.

Why Would This Be Bearish for Crypto?

• Precedent for Regulation: Successfully passing a stock trading ban could create the political momentum needed to introduce similar restrictions on crypto, signaling a more aggressive regulatory stance.
• Loss of Influential Advocates: If lawmakers are barred from holding or trading crypto, it could diminish the number of influential and informed advocates for the industry within the government.
• Negative Market Sentiment: Such a move could be interpreted by the market as a step towards broader, more restrictive control over digital assets, potentially spooking institutional and retail investors.

This isn’t just speculation. There have already been discussions among some lawmakers about extending such trading bans to include cryptocurrencies for the president, vice president, and members of Congress, making this a tangible threat on the horizon.

XRP at a Crossroads: Technical Analysis Points to a Major Move

Shifting from the long-term political landscape to the immediate price charts, the same analyst notes that XRP is currently at a critical juncture. The digital asset is trading within a symmetrical triangle pattern, a technical formation that typically indicates a period of consolidation before a significant price breakout.

A symmetrical triangle presents a 50/50 probability of a move to the upside or the downside. However, the analyst leans towards a bullish outcome, provided certain conditions are met.

Key Levels to Watch for a Bullish Breakout

For the bullish scenario to play out, the analyst is watching for a decisive price movement on the 3-day chart. The key confirmation would be a full-body candle closing above two critical levels:

• The 21 Simple Moving Average (SMA), a key momentum indicator.
• The price resistance levels of $3.077 and $3.13.

Should XRP achieve this, the analyst predicts a possible brief retest of the breakout level around $3.03. A sustained close above the $3.30 mark could then be the final catalyst to propel XRP towards a new all-time high (ATH).

Strategy Revealed: When the Analyst Plans to Sell XRP

Even with a bullish short-term outlook, the analyst shared a clear exit strategy. The plan is to begin offloading XRP holdings once the price achieves a new all-time high. This suggests a belief that a new peak could signal that the market top is near, making it an opportune moment to take profits before an inevitable correction.

This dual analysis presents a fascinating picture for XRP holders. On one hand, a major political event could serve as a long-term signal to exit the market entirely. On the other, the short-term technicals may be setting the stage for a powerful rally towards new highs.

Ultimately, investors are left to weigh a potential macro-level threat against a micro-level opportunity. Staying informed on both political developments in Washington and key technical levels on the charts will be crucial for navigating XRP’s next major move.