Foreign media reports suggest that the nearly three-week-long weakness in the crypto market may be nearing its end. The article cites an analyst who suggests that if funds return to digital assets, XRP, HBAR, and XLM could be three cryptocurrencies worth watching.
The downward pressure comes from two aspects.
The article argues that this correction was primarily driven by two factors. First, after Bitcoin rebounded by approximately 40% from its lows, some large investors chose to lock in profits. Second, Bitcoin ETFs experienced continuous outflows, further increasing selling pressure in the market.
Meanwhile, traditional technology and semiconductor stocks continued to hit new highs, attracting some funds to shift to US stocks and weakening the short-term appeal of crypto assets. Based on this, the article concludes that the recent market weakness is not due to a single negative factor, but rather the result of multiple fund flows working together.
XRP is considered relatively undervalued.
Of the three, analysts consider XRP a relatively undervalued asset. The article states that despite an improved regulatory environment, XRP has lagged behind in the recent altcoin rally.
The article mentions that the CLARITY Act, currently being pushed forward by the US Congress, could be a potential catalyst for XRP. Given XRP's deep connection to the US regulatory environment, if the market begins to trade in advance for clearer regulatory expectations, investor interest could rebound, narrowing the gap between it and other strong-performing altcoins.
HBAR and XLM have different focuses
Regarding HBAR, the article emphasizes the narrative adopted by companies and institutions. Analysts believe that once market risk appetite recovers, projects with real-world business applications may attract more funding than purely speculative assets, hence Hedera has been placed on a priority watch list.
The logic behind XLM (Extra-Large ETFs) stems more from changes in fund flows. The article states that as ETF selling pressure eases, coupled with the increased buying activity typically seen at the start of a new month and quarter, some funds have shown signs of reallocation. If US regulatory legislation continues to progress, investors may also factor in improved industry regulatory expectations before the legislation is formally implemented.
