XRP Soars to $3.16 After 2-Month Breakout as Hong Kong Backs Crypto

XRP Breaks Out of 2-Month Compression, Surges to $3.16

XRP has officially broken out of a two-month-long compression phase, igniting fresh bullish momentum as its price jumped to $3.16, according to crypto pundit Maxi.

For weeks, XRP had been consolidating within a narrow range, frustrating traders who were waiting for a decisive move. Compression phases, often marked by decreasing volatility and tightening price action, typically signal that a significant breakout is imminent. The recent surge confirms this thesis, with the token finally snapping out of its sideways pattern to the upside.

Technical analysis suggests that this breakout is significant not only for its price implications but also for what it reflects about investor sentiment. 

A compression breakout is frequently interpreted as a strong signal of renewed interest and accumulation. In XRP’s case, the $3.16 move marks its highest level in months, underscoring growing confidence among market participants.

The breakout has also reignited conversations about XRP’s ability to challenge previous highs. Traders are eyeing critical resistance levels, with some forecasting a potential move toward $3.60 if bullish momentum continues. However, analysts caution that the token could face short-term pullbacks as profit-taking occurs. Sustaining support above the breakout zone will be key to validating the upward trajectory.

As the crypto market braces for heightened volatility heading into the final quarter of 2025, XRP’s breakout at $3.16 serves as a reminder of how quickly sentiment can change. Whether this momentum extends toward new highs or consolidates at current levels, one thing is clear: XRP has reawakened, and traders are watching closely.

Hong Kong Proposes Easier Bank Capital Rules for Crypto

According to Caixin, The Hong Kong Monetary Authority (HKMA) has moved to soften the regulatory squeeze on banks that hold certain cryptocurrencies, unveiling a consultation paper that would lighten capital requirements for licensed and well-managed digital assets.

The draft, published as a new supervisory module called CRP-1 in the HKMA’s Supervisory Policy Manual, aims to give regulated stablecoins and compliant tokenised assets a different prudential treatment from volatile, unbacked tokens like Bitcoin, XRP, and Ether.

Under the proposal, banks that custody or invest in digital assets issued and operated under the city’s licensing and risk-management rules could qualify for lower capital charges, provided issuers and intermediaries demonstrate robust governance, reserve management and operational controls.

 Regulators say the move is intended to align Hong Kong’s approach with the Basel Committee’s upcoming standards while preserving banks’ safety buffers. 

The HKMA has framed the change as risk-sensitive rather than permissive whereby assets will be bucketed by legal status, liquidity, and the effectiveness of issuers’ safeguards, meaning only token classes that meet defined stability and disclosure tests would benefit from the lighter capital treatment.

For example, fiat-backed stablecoins that secure reserves and redemption rights under the new licensing regime could attract materially lower capital weights than permissionless tokens whose values are driven by market speculation.

Practical effects could be significant. Lower capital costs make it more economically viable for traditional banks to offer custody, settlement and market-making services for regulated digital assets, a development that would deepen institutional liquidity and could spur adoption of tokenised financial products. At the same time, the HKMA’s consultation keeps supervisory levers in place, signalling that broader systemic risks and consumer protections remain priorities. 

Conclusion

Hong Kong’s move to ease capital rules for banks holding regulated digital assets underscores its intent to position itself as a global leader in tokenised finance. 

By striking a balance between innovation and risk management, the city is giving traditional institutions a clearer path to participate in the crypto economy without compromising financial stability. 

Meanwhile,  XRP’s breakout from its two-month compression to $3.16 is more than just a technical event, it reflects renewed confidence in the asset’s long-term relevance. With growing adoption of the XRP Ledger, rising investor participation, and strengthening market momentum, XRP is positioning itself for a potentially transformative phase.