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Will XRP Crumble Below $1 in February? The Answers Worried Us

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Will XRP Crumble Below $1 in February? The Answers Worried Us


XRP is already down by 30% from its peak this month.

The landscape around most cryptocurrencies has been quite unfavorable for the past few weeks, and Ripple’s cross-border token was not spared.

After a strong start to the new year, in which it rocketed by 30% in days to a multi-week high of just over $2.40 on January 6, the asset was rejected and driven south hard. The latest correction from the last trading week of January brought it south to a 14-month low of $1.50 – a level last seen before the price rally after the US elections in 2024.

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The question we just asked some of the most popular AI solutions is whether XRP is heading for a new low at or below $1.00 soon.

XRP to Hold $1?

Gemini was somewhat conservative in its prediction for XRP in February. It noted that after such a prolonged period of enhanced volatility that included several 30% price moves in either direction, the asset is most likely to enter a consolidation phase. More specifically, it named the upcoming period “consolidation followed by a decision point.”

In the more favorable scenario for the bulls, this sideways trading could occur at around $1.80-$2.00 if XRP manages to rebound and hold above the $1.65-$1.70 support during the first week of the new month.

However, if it fails and falls, the bearish continuation is more likely to transpire at around $1.25-$1.45. Interestingly, Grok also provided an identical price target for the first few weeks of February, suggesting that if the $1.70 floor breaks decisively, there is “very little volume support until the $1.45 region.” It added that this is the “max pain” scenario for late buyers, and essentially dismissed the sub-$1.00 possibility.

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$1 or Less in Feb?

ChatGPT noted that XRP will likely defend the $1.00 level in February. It admitted that the ongoing selling pressure is intense, perhaps due to the escalating global tension, which is also evident from the latest ETF outflows, but believes the $1.00 target is still far from XRP to be causing actual concern. However, it noted that such a possibility is still in the cards for XRP by the end of Q1 and the beginning of Q2.

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Perplexity was slightly more bearish on the token’s upcoming price performance. It explained that if the geopolitical landscape worsens, which could take place in days if the US indeed attacks Iran, XRP, being a riskier asset, might find itself in another nosedive situation, this time toward $1.00.

However, it also dismissed the possibility of a price drop below that level in February, as long as there’s no black swan event.

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Crypto World

Banks Push Tokenized Deposits as On-Chain Cash Race Heats Up

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Crypto Breaking News

Banks are increasingly testing tokenized deposits as a practical way to move traditional commercial bank money onto blockchain-based payment and settlement rails. A new report from the real-world asset data platform RWA.io, with input from UK Finance, Citi, BNY, JPMorgan’s Kinexys, Standard Chartered, ABN Amro and Digital Asset, argues that tokenized deposits are emerging alongside stablecoins and central bank digital currencies as part of a broader on-chain cash stack for the financial system.

Tokenized deposits are digital representations of ordinary bank deposits on blockchain or other distributed ledger infrastructure. Unlike many stablecoins, they are direct liabilities of the issuing bank and remain governed by existing banking frameworks, including deposit insurance, capital requirements and anti-money laundering and know-your-customer rules. The report highlights a growing slate of pilots and deployments across Europe as banks seek to preserve their role in payments, treasury and deposit-taking amid a proliferation of digital cash instruments.

The report notes visible momentum in Europe, anchored by recent public pilots. In January, Lloyds Banking Group and Archax announced they completed the UK’s first public blockchain transaction using tokenized deposits on the Canton Network. Separately, UK Finance’s Great British Tokenised Deposit pilot is examining person-to-person marketplace payments, remortgaging and digital-asset settlement with a target to advance through mid-2026.

The broader narrative is that banks are trying to reposition themselves at the center of digital money flows as tokenized forms of cash multiply and new settlement rails emerge. The two-tier monetary-ecosystem picture that underpins these efforts is a key theme of the report and a reminder that commercial bank money continues to underpin everyday payments even as the frontier of digital assets expands.

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Two-tier monetary system architecture. Source: RWA.io

Tokenized deposits as a middle ground in the stablecoin, CBDC debate

UK Finance frames tokenized deposits as a vital bridge in a future “multi-money” ecosystem. In their view, tokenized deposits will sit alongside privately issued stablecoins and, potentially, central bank digital currencies, offering a framework in which traditional bank money can operate on new digital rails while preserving regulatory protections and consumer safeguards.

“Bringing that money onto digital rails will underpin the next generation of digital finance,” said Marko Vidrih, co-founder and chief operating officer at RWA.io. “For that reason, it is important to understand how tokenized deposits fit within the broader digital money ecosystem alongside stablecoins and CBDCs.”

ECB advances digital euro work, building tokenized money rails

The policy backdrop in Europe is advancing in parallel. The European Central Bank is expanding its digital euro program as private and public digital money compete for cross-border and domestic use. The ECB has opened applications for experts to contribute to workstreams on how a digital euro would function across ATMs, payment terminals and acceptance infrastructure, with plans to begin a 12-month pilot in the second half of 2027.

In March, the ECB unveiled Appia, its long-term blueprint for tokenized markets in Europe that would work with central bank money. A core element of Appia is Pontes, a new settlement mechanism designed to connect blockchain-based platforms to the Eurosystem’s payment infrastructure. The existing framework, TARGET Services, already processes large-value euro payments, securities settlements and instant payments across Europe. Pontes is scheduled to launch in the third quarter of 2026, with feedback from Appia’s consultation guiding broader tokenized-finance framework decisions for Europe.

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These developments come as policymakers seek to balance innovation with safety, and as banks, fintechs and custodians explore how tokenized assets and on-chain settlement fit within existing regulatory and supervisory regimes.

For market participants, the implication is clear: tokenized deposits could serve as a practical on-ramp for institutions anchored in traditional banking to participate in the digitized economy without abandoning their regulated foundations. The combined push—from UK pilots to European rails—highlights a trend toward interoperable, regulated on-chain money that preserves the institutional protections that users rely on today.

As the ecosystem evolves, investors and users will be watching how these rails interact with private-stablecoin ecosystems, CBDC pilots and cross-border settlement standards. The success of tokenized deposits will hinge on risk controls, interoperable settlement timelines, and the readiness of banks to scale these pilots into durable, insured, compliant products that can operate alongside existing payment networks.

What remains uncertain is how quickly regulators will align around clear standards for tokenized deposits, what coverage and insurance will apply at scale, and how liquidity and settlement finality will be ensured across heterogeneous blockchain rails. Yet the convergence of bank money with tokenized infrastructure marks a notable shift in the trajectory of digital finance, one that could influence how institutions price, manage and settle money in a world where digital and traditional money increasingly coexist.

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Readers should watch the next phase of UK pilots and the European rollout of Appia and Pontes for concrete milestones on settlement timings, interoperability tests and regulatory clarity that could determine whether tokenized deposits become a standard feature of the financial system, or a pioneering set of pilots with limited upside outside controlled environments.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Saylor Hints Strategy Bought More Bitcoin

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Saylor Hints Strategy Bought More Bitcoin

Strategy executive chair Michael Saylor has hinted that his company bought more Bitcoin despite a market tumble over the weekend that has now pushed his company’s Bitcoin bet into a 10% loss. 

“The Orange March Continues,” Saylor posted to X on Sunday, alongside a chart showing Strategy’s roughly $52 billion worth of Bitcoin (BTC) purchases since August 2020. 

Saylor often posts the chart as a signal that his company has bought, or plans to buy more Bitcoin and it is often seen as a bullish signal for investors. 

Source: Michael Saylor

The potential buy would add to Strategy’s larger-than-usual Bitcoin purchases this month, including 17,994 Bitcoin on March 9 and 22,337 Bitcoin on March 16, amounting to $2.9 billion in Bitcoin. 

It also comes amid heightened military tensions between US and Iran, causing fears of a prolonged energy and oil crisis. 

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Bitcoin fell 4% to $67,725 on Sunday before partially recovering to $68,100 at the time of writing.

With Strategy’s average cost per Bitcoin at around $75,696, the company is currently down more than 10% on its Bitcoin bet, according to BitcoinTreasuries.

Details of Strategy’s Bitcoin holdings. Source: BitcoinTreasuries.NET

Strategy had been funding much of its Bitcoin purchases through high-yield perpetual preferred stock offerings — such as Stretch (STRC) — giving investors monthly dividends while the company grows its Bitcoin treasury without diluting MSTR common shares. 

However, it halted funding through STRC last week after failing to raise fresh capital from the preferred stock.

MSTR back in the red after short-lived rally

Strategy (MSTR) shares fell 6.6% last week to $135.66, erasing some of the double-digit gains they made earlier in the month, Google Finance data shows.

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