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What next as Ripple-linked token ends early-2026 downtrend

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What next as Ripple-linked token ends early-2026 downtrend

XRP pushed higher after breaking a months-long descending trendline, with a surge in trading volume confirming renewed momentum above the $1.39 resistance zone.

News Background

  • XRP has struggled to sustain rallies through early 2026 as sellers repeatedly defended a descending resistance line formed by lower highs since January.
  • The latest move marks the first decisive break above that structure, shifting short-term sentiment as traders reassess whether the corrective phase may be ending.
  • Fund flows offered a mixed backdrop. U.S.-listed XRP ETFs recorded roughly $3.9 million in outflows during the session, extending a short streak of redemptions even as technical momentum improved.
  • Meanwhile, activity on the XRP Ledger continued to rise. Daily transactions recently climbed to around 2.7 million, among the highest levels in recent months, partly driven by projects focused on tokenizing real-world assets.

Price Action Summary

  • XRP climbed from about $1.37 to $1.41 during the 24-hour session
  • Price cleared the $1.39 resistance zone that capped rallies earlier this year
  • Trading volume surged to roughly 205 million tokens, more than triple the recent average
  • The token traded within a roughly $0.057 intraday range during the breakout

Technical Analysis

  • The key technical development was XRP’s break above the descending trendline that had defined its downtrend since early 2026.
  • The move came with a sharp expansion in trading volume, suggesting the breakout reflected active participation rather than thin liquidity.
  • After the breakout, price briefly tested the $1.41 area before consolidating slightly lower.
  • On shorter timeframes, XRP held above the $1.40 zone, forming a sequence of higher lows that indicates buyers are attempting to establish the former resistance area as support.
  • If this structure holds, it would confirm a shift from the previous pattern of lower highs that dominated the past several months.

What traders say is next?

  • Traders are now watching whether XRP can hold above the $1.39–$1.40 area.
  • Maintaining that level would confirm the trendline breakout and could open the door for a move toward the next resistance zones around $1.44 and $1.50.
  • A failure to hold above the breakout level, however, could pull XRP back toward the $1.34–$1.37 support band and signal the move was a short-term liquidity sweep rather than the start of a sustained trend reversal.

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Crypto World

Bitcoiner Group to Fight Bitcoin’s Treatment as ‘Toxic Asset’

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Bitcoiner Group to Fight Bitcoin’s Treatment as ‘Toxic Asset’

The Bitcoin Policy Institute (BPI) says it will push the US Federal Reserve to change how Bitcoin is treated, as the central bank is set to issue rules on how banks should implement international guidelines for asset risk weighting.

“BPI will be reviewing this proposal closely and submitting a public comment to ensure that US regulators get Bitcoin’s treatment right,” Bitcoin Policy Institute managing director Conner Brown said in an X post on Wednesday. 

It comes just a day after the Fed announced it will issue a proposal for public comment on how US banks should implement risk-weighting guidance, which determines how risky different assets are on a bank’s balance sheet, from the Basel Committee on Banking Supervision.

Brown said Bitcoin (BTC) is “treated as a toxic asset under the Basel framework, a global standard for banking regulations.

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Source: Conner Brown

He added it carries a 1,250% risk weighting, which was “harsher than virtually all other asset classes.” 

“More efficient regulation” is the aim: Fed

Federal Reserve vice chair for supervision Michelle Boman said on Thursday that the agency will be proposing rules in the coming weeks to implement the final phase of Basel in the US.

Bowman said that the aim is “more efficient regulation and banks that are better [positioned] to support economic growth, while preserving safety and soundness.” 

The 1,250% capital requirement means that banks must back any Bitcoin on their balance sheets at a 1:1 ratio with approved collateral, making holding the cryptocurrency more costly than other asset classes. 

Cash, physical gold and government debt carry a 0% risk weight under the Basel framework.

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“The most punitive classification”: Bitcoin Policy Institute

Brown said in a blog post last month that the treatment of Bitcoin is the “most punitive classification” in the Basel Committee’s capital framework and a “category error.”

Related: Bitcoin hugs $70K range as March Fed rate cut odds fall below 1%

In 2021, the Basel Committee proposed placing crypto in its high-risk Group 2 set of assets. Group 2 holdings were restricted to under 1% of the value of their Group 1 holdings.

“This risk weighting makes it extremely difficult for banks to provide financial services to Bitcoiners and Bitcoin companies,” Brown said.

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