XRP News Today: Bitcoin's Uptrend Weakens Amid Large Investor Distribution

Bitcoin's upward trend showed signs of weakness early Wednesday, despite a surge in tech stocks overnight. The leading cryptocurrency by market value traded near $108,900, hinting at a potential downside break of a trendline that has characterized the uptrend since early April lows. Bullish trendlines typically indicate areas of strong demand, and a move below one is often seen as a sign of a potential reversal and the start of a downward move.

Prices have struggled to make significant gains this week despite positive news, including Circle's plans to file for an IPO and Trump Media's plans to raise $2.5 billion to purchase bitcoin. On-chain activity suggests that large investors have recently begun distributing coins, contributing to the market's selling pressure. According to Glassnode, as of May 26, the >10K BTC cohort has pivoted to net distribution, signaling a notable shift in positioning among the largest holders. However, the overall market remains in an accumulation mode.

Later Wednesday, the focus will be on the minutes of the Federal Reserve's May meeting, which will provide detailed insights into the committee’s stance on monetary policy and potential clues about future interest rate decisions. The central bank left the benchmark interest rate unchanged early this month, with Chairman Jerome Powell pointing to President Donald Trump's tariff war as a source of inflation and uncertainty. Powell also mentioned "stagflation." The minutes are likely to reiterate the same, although the recent tariff delay by Trump means the market may not pay much attention to hawkish messaging.

Meanwhile, AI major Nvidia's earnings announcement could move markets, particularly digital assets, given the historical positive correlation between BTC and NVDA. The firm is expected to report strong earnings and revenue growth, driven by investments in AI infrastructure. The focus will be on the company's outlook on AI demand and China amid restrictions on Chip exports to China.

Payments-focused XRP held the 200-day simple moving average (SMA) during overnight trading amid growing social media chatter about XRPFi, or decentralized finance on the XRP Ledger. Strobe Finance, which leverages the smart contract capabilities of Ripple's EVM sidechain to create a DeFi platform on the XRP Ledger, stated that large amounts of XRO are currently idle and can be deployed in DeFi for additional yield. According to Strobe, Ripple’s community research reveals a significant dormant user base: over 4 million inactive XRPL wallets hold an estimated US$2.15 billion in XRP, compared to 1.7 million active wallets. This dormant capital represents a large, addressable market waiting to be unlocked through compelling DeFi opportunities.

The chart shows XRP trading in bullish territory, above the Ichimoku cloud and the 200-day Simple Moving Average (SMA). The average has acted as strong support or area of interest for buyers since early April.