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Here’s Why XRP Price’s 2026 Downtrend May Not End Soon

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XRP MVRV Extreme Values

XRP has faced a period of sideways momentum over the past month, with its price consolidating between key levels. This range-bound movement suggests that the altcoin has been struggling to break free from the pressure that led to its current consolidation. 

Given the ongoing market conditions, XRP could face further decline before any potential recovery.

XRP Faces Extreme Pressure

The MVRV Extreme Ratio, which measures the relationship between market value and realized value, indicates that XRP is undervalued and under pressure. Currently, the MVRV has been below 1.0 for approximately 15% of trading days, signaling a lack of positive momentum. 

Historically, this metric has either led to short-term recoveries or worsened the situation further, potentially driving XRP to new lows. Based on current trends, XRP may face the latter scenario, with continued downward pressure.

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XRP MVRV Extreme Values
XRP MVRV Extreme Values. Source: Glassnode

In this context, the low MVRV ratio suggests that investors are hesitant to drive the price upward, and the market sentiment around XRP remains weak. Unless a significant catalyst emerges, the undervaluation reflected by this metric could continue to suppress XRP’s price in the near term.

XRP is also facing a shift in macro momentum, as the overall market sentiment appears to be turning bearish. The exchange net position change highlights an increase in selling pressure, with a decline in buying momentum. 

As exchanges begin to register more inflows than outflows, the shift from buying to selling could signal that a downturn is imminent for XRP. This change in dynamics could put further strain on the altcoin, as it struggles to maintain upward momentum.

XRP Exchange Net Position Change.
XRP Exchange Net Position Change. Source: Glassnode

As buying slows down and selling picks up, XRP could see its price slip further. This shift in the macro momentum highlights the current market instability, which could contribute to a prolonged downtrend for XRP in the coming months.

XRP Price May Struggle To Recover

At the time of writing, XRP is trading at $1.35, caught within a range between $1.34 and $1.47. The downtrend that has persisted since the beginning of the year remains intact, with the cryptocurrency struggling to break free from the range. This resistance at $1.47 has proven difficult to overcome, while support at $1.34 has been tested multiple times.

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Given the current market conditions and the pressure indicated by the MVRV ratio and macro momentum, XRP faces a bearish outlook in the short term. The price could break through the $1.34 support level, potentially falling to $1.21. This would signal a deeper decline and extend the ongoing downtrend, increasing the pressure on the altcoin.

XRP Price Analysis.
XRP Price Analysis. Source: TradingView

However, if XRP holders manage to find support from investors and buying momentum resumes, the altcoin could break through the $1.47 resistance level. A move above this level could propel XRP to $1.58, invalidating the bearish outlook and signaling the potential for a reversal. If XRP manages to sustain upward momentum, it could eventually target $1.70, marking a complete shift in market sentiment.

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Crypto World

Here is Why AI and Stablecoins Defy Crypto Market Weakness in 2026

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Here is Why AI and Stablecoins Defy Crypto Market Weakness in 2026

AI and stablecoin segments have outperformed the broader crypto market in 2026, with data pointing to continued usage growth despite declining prices elsewhere.

Key takeaways:

  • AI sector posts smallest loss in Q1/2026, down just 14%.

  • Stablecoin market cap hits a record $320 billion, with monthly transaction volumes at a record $1.8 trillion.

AI and stablecoin sectors buck the trend

Bitcoin (BTC) trades 18.5% lower in 2026, the total crypto market capitalization has slipped to $2.42 trillion, while most altcoins are lagging, as fear and uncertainty surrounding the US and Israel-Iran war and the Fed’s hawkishness grip the market.

Meanwhile, AI and stablecoin businesses continue to defy the trend, recording significant growth and strong fundamentals that highlight a rotation toward infrastructure over speculation.

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Related: Circle asks EU to ease crypto thresholds in proposed markets framework

For example, Circle’s USDC (USDC) supply is at $78 billion, a 220% increase since November 2023, data from Token Terminal shows

ChatGPT’s weekly active users have also grown to 900 million in March 2026 from 85 million in November 2023, a roughly 10x increase over the same period.

USDC supply and ChatGPT WAU. Source: Token Terminal

Grayscale’s Q1/2026 report reinforces this observation, revealing that the AI sector recorded the smallest loss at 14% during the first three months of the year, compared to Consumer and Culture at 31%, Smart Contract Platforms at 21%, and Currencies at 21%. 

This indicates that “investor appetite shifted away from momentum-driven and more speculative segments,” the digital-asset investment manager said, adding:

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“Despite subdued overall sentiment, capital appeared to rotate toward projects with stronger fundamentals and those aligned with key themes such as AI and tokenization.”

Returns for each sector were negative in Q1/2026. Source: Grayscale

The market capitalization of AI tokens now stands at $17.4 billion, up 30% over the last 30 days. Bittensor (TAO) and NEAR Protocol (NEAR) lead the growth, with 75% and 30% price increases, respectively, over the same period 

Market capitalization of top AI and big data tokens. Source: CoinMarketCap

Similarly, stablecoins continue to grow, with the total market capitalization hitting a record $320 billion on March 23. Tether’s USDt (USDT) maintains dominance around $184 billion, representing 57% of the total stablecoin supply.

Monthly transaction volumes hit a record $1.8 trillion in February, rivaling traditional payment rails. USDC led supply growth with an 80% month-to-month increase to a $1.26 trillion all-time high last month. 

Stablecoin market capitalization. Source: MacroMicro.me

Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to fiat currencies like the US dollar, and can be hosted on multiple blockchains.

In a bear market, stablecoins serve as buying power and settlement rails, dominating trading pairs, supporting tokenized real-world assets, and enabling yield-bearing products. 

Ethereum and other chains see high transfer volumes, while institutional products from banks and fintechs integrate them for yield and treasury management. This infrastructural role persists even as speculative assets bleed.

“Structural tailwinds” drive growth convergence 

The two sectors thrive because they deliver measurable value even after speculation fades.

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“AI labs and stablecoin issuers are among the businesses with the strongest structural tailwinds of the 2020s,” Token Terminal said.

They sit at the “intersection of three distinct forces: technology, finance, and geopolitics,” with each of these drivers independently driving demand for these sectors, the crypto data provider said, adding:  

“AI drives productivity and defense capabilities, while stablecoins provide financial infrastructure for global dollar distribution.”

In an X post on Monday, Crypto trader Mando CT said AI and stablecoins are among the four dominant sectors in 2026. 

Explaining the convergence, the trader said that AI needs instant and low-fees payment systems to operate, while stablecoins are the “internet money” needed to make this happen.

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“These trends are connected,” Mando CT said, adding:

“2026 isn’t just another cycle. It’s the transition from: Speculation to Infrastructure.”

Cointelegraph reported that stablecoins could benefit from AI-driven payments by enabling easy, automatic, and rule-based transactions between entities, further driving long-term growth for both sectors.