The post Reasons why XRP is poised to lead 2026 DESPITE drop below $2 appeared on BitcoinEthereumNews.com.

The market is already hyping 2026, and there’s a good reason for it. On the regulatory side, the Clarity Act, set for markup in early January, is starting to set the tone for the broader crypto market. According to AMBCrypto, this is where L1s are stepping into the spotlight. The logic is simple – If the Act draws a clearer line between speculation and regulation, competition among L1s is bound to heat up. And, when you look at Ripple [XRP], it feels like bulls are already front-running that narrative. Source: Glassnode According to data from Glassnode, XRP balances on exchanges have dropped from roughly 4 billion towards the start of the year to around 1.5 billion at press time. In other words, sell-side liquidity has been thinning out. At the same time, XRP ETFs have pulled in $1.14 billion in cumulative net inflows across five products, giving institutional demand a noticeable boost. Put together, this lines up well with AMBCrypto’s broader L1 thesis. With on-chain demand for XRP holding up, bulls seem to be treating the Clarity Act as a key catalyst for XRP. Especially given how its strategic roadmap has played out so far in 2025.  Against that backdrop, does XRP’s move below $2 look more like a textbook reset than a true structural breakdown? XRP’s supply squeeze faces market hesitation Despite the earlier hype, 2025 hasn’t been kind to the altcoin market. From a technical angle, most alts are still trading well below their late-Q3 highs. That lines up with the Altcoin Season Index topping at 80 and now sitting at 37, showing how little rotation there’s been into high-beta names. Even top caps haven’t been spared.  That being said, the relative drawdowns stand out. Solana [SOL] is down 40% on the year, while XRP has slipped by…

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Filed under: News - @ December 28, 2025 2:04 am