XRP Signals Recovery as Traders Eye Market Bottom

XRP is showing encouraging signs of a rebound as crypto traders start identifying potential market bottoms, even amid macroeconomic turbulence and ongoing geopolitical challenges.

During early Monday trading in Asia, Bitcoin (BTC) hovered near the $105,000 mark, maintaining near-flat movement over the day but posting a 5% decline over the past week. The broader altcoin market, including tokens like Ether (ETH), Solana (SOL), Cardano (ADA), and Dogecoin (DOGE), mirrored this behavior, forming support around key levels that analysts suggest could mark a local price floor. This development is fueling cautious optimism for short-term gains among intraday traders.

According to Nick Ruck, Director at LVRG Research, investor caution continues to weigh on crypto markets due to uncertainty surrounding U.S. inflation data, tariff policies, and broader concerns about the U.S. economy. This macro backdrop has limited upside momentum for Bitcoin and other cryptocurrencies. “Bitcoin is trading sideways around $105K as investors remain wary of current macroeconomic conditions,” said Ruck, noting that geopolitical tensions are also prompting risk-averse behavior in the market.

Despite these headwinds, Ruck maintains a positive long-term perspective: “We’re seeing a steady influx of institutions and users entering the digital asset space daily, which reinforces a bullish outlook over time.” His sentiment reflects an industry-wide view that structural adoption trends could cushion the crypto sector against short-term volatility.

Global trade friction, particularly between the U.S. and China, remains a significant source of market anxiety. On Monday, China criticized new U.S. restrictions impacting AI chip exports and software licenses, vowing retaliatory measures. Such developments have led investors to tread carefully, as heightened tensions can rapidly influence volatile assets like cryptocurrencies.

Jeff Mei, Chief Operating Officer at BTSE, underscored this point: “Over the weekend we saw how even minor escalations in trade disputes can swiftly alter crypto market dynamics,” he said via Telegram. Mei advised traders to closely follow announcements from both Washington and Beijing, as well as news related to the ongoing Russia-Ukraine conflict. He also emphasized attention to upcoming U.S. economic indicators, including trade balance data, job reports, and public statements from Federal Reserve officials.

“Macroeconomic trends have become the prevailing force behind crypto price movements, making near-term forecasts challenging,” Mei added. However, he expressed confidence in growing institutional investment in digital assets, which remains a positive leading indicator for the sector’s evolution.

Among altcoins, XRP and SOL are capturing increased attention as investors look beyond Bitcoin’s correlation with conventional markets. While Bitcoin has increasingly behaved like a traditional risk asset, blockchain networks like XRP (Ripple) and Solana offer different value propositions, particularly for investors seeking alternative growth opportunities.

Kathy Qu, Research Manager at HashKey Cloud, explained that ongoing policy uncertainty is steering capital toward high-growth sectors, including cryptocurrencies. “Many investors are expanding their portfolios to include more crypto assets, especially those considered friendly to traditional finance, like Bitcoin and XRP,” Qu said. She noted that the growing anticipation around Exchange-Traded Funds (ETFs) tied to these assets is enhancing their appeal.

Beyond token prices, areas like decentralized finance (DeFi) and staking remain bright spots in the ecosystem. Qu highlighted that real-world asset tokenization is gaining traction, and recent moves by the U.S. Securities and Exchange Commission (SEC) — particularly around staking exemptions for Ethereum ETFs — could pave the way for broader institutional engagement in DeFi markets.

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

With ongoing diversification, solid infrastructure developments, and signs of foundational support in token prices, XRP and its peers are well-positioned for potential upside — assuming macro pressures begin to ease. While uncertainty still hangs over the short term, long-term sentiment surrounding digital assets like XRP remains largely constructive based on increasing adoption and institutional interest.