CNBC calls XRP the 'breakout trade' of 2026
CNBC has named the key reasons why XRP is surging higher.
- 20% price surge. CNBC has described XRP as the “breakout trade” of 2026, noting the token is up more than 20% year to date.
CNBC has described the Ripple-linked XRP token as the "breakout trade" of 2026. The network has noted that the token tied to the San Francisco-headquartered enterprise blockchain firm is up by more than 20% since the start of the year. It also noted that XRP climbed to 3rd place by market value, surpassing the BNB token.
- Key drivers. CNBC has identified three major reasons why XRP is rallying.
First of all, there is no regulatory overhang now that Ripple has wrapped up its fight with the SEC. For years, the "overhang" was the fear that the U.S. Securities and Exchange Commission (SEC) would successfully classify XRP as an unregistered security.
This possibility forced U.S. exchanges to suspend trading and prevented regulated institutions from holding it. However, Ripple finally wrapped up the legal battle last year.
Secondly, XRP is viewed as a less crowded trade than Bitcoin and Ether, which might make it more attractive. Bitcoin and Ether are currently heavily correlated with global macro trends and equity markets. XRP has less "legacy baggage" in terms of positioning. This allows it to decouple and act as a high-beta asset that can outperform when capital rotates out of the crowded majors. In early 2026, XRP managed to decouple from the broader market.
Finally, XRP ETF flows have held up even during the Q4 correction. "Investors kept adding money to XRP-focused funds," the network said.
Bitcoin's New Year rally falters near critical price support
BTC is on the cusp of plunging below the $90,000 level as bullish enthusiasm fades.
- Failed rally. Bitcoin has failed to hold above $90,000 three separate times since November 2025.
Bitcoin bulls started the year on a high note, pushing the flagship cryptocurrency to nearly $95,000. However, the rally quickly faded.
The flagship coin is now on the cusp of losing the make-it-or-break-it $90,000 level once again. Bitcoin has failed to hold above the critical $90,000 level three distinct times since November 2025.
- Bearish sentiment. Traders increasingly view the New Year rally as a bull trap rather than a true trend reversal.
The current despair among bulls is driven by the realization that the New Year's rally was likely a "bull trap" rather than a structural reversal.
The current despair among bulls is driven by the realization that the New Year's rally was likely a "bull trap" rather than a structural reversal. If the breakout does not immediately confirm with strong momentum, the bullish structure is invalidated.
Cardano futures activity spikes as ADA tests key $0.40 support
ADA rockets 25,084% in futures activity even as the crypto market sees profit taking.
- Derivatives activity. Cardano saw a sharp surge in derivatives activity even as its price pulled back to a crucial technical level amid broader market weakness.
Cardano saw a surge in futures activity even as ADA price tested a crucial support level amid the ongoing price drop in the markets.
The broader crypto market saw selling pressure on Wednesday amid increased risk-off sentiment among traders. U.S. equities also fell alongside the Nasdaq 100 futures. A total of $465 million was liquidated in positions across the crypto market, with longs accounting for over half of this figure.
Amid the market drop, Cardano futures volume has risen 25,084% on the Bitmex exchange to reach $162 million in 24 hours, according to CoinGlass data.
- Price movement. The price is now testing the $0.40 zone, which aligns with the daily MA 50.
Cardano started rising from a low of $0.331 on Jan. 1. The sustained rise produced a crucial breakout for Cardano, allowing it to surpass the daily MA 50 (currently at $0.40) for the first time since October.
Cardano is testing support at the $0.4 level, which coincides with the daily MA 50, having touched this level in early Wednesday session. If the daily MA 50 can act as short-term support, it will boost the chances of ADA continuing its price climb.
Godfrey Benjamin
Gamza Khanzadaev
Arman Shirinyan
Alex Dovbnya