Nearly three weeks of weakness across crypto markets may be running out of steam, with one analyst identifying XRP, Hedera, and Stellar Lumens as the assets best positioned to benefit when capital begins rotating back into digital assets.
The analyst pointed to two primary drivers behind the recent correction. First, large investors took profits after Bitcoin had already rallied around 40% from its lows.
Second, sustained outflows from Bitcoin exchange-traded funds added selling pressure through the period. At the same time, technology and semiconductor stocks continued hitting record highs in traditional markets, pulling capital away from crypto.
The analyst described XRP as the most undervalued asset among his three picks. It has lagged behind recent altcoin rallies despite improving regulatory conditions following years of legal uncertainty. He sees the CLARITY Act as a specific catalyst for XRP, given the project’s close ties to the US regulatory landscape, and expects renewed investor interest to narrow the gap with better-performing altcoins as sentiment improves.
Hedera remained one of the analyst’s preferred picks on the basis of its enterprise and institutional adoption story. As broader market confidence returns, he expects investors seeking projects with real-world business use cases to look more closely at Hedera. A rotation back into crypto would likely benefit assets with institutional credentials more than purely speculative plays.
Stellar Lumens has already outperformed much of the market recently, driven by tokenisation-related developments within the Stellar ecosystem. The analyst noted that meaningful capital has already started moving into XLM and sees growing interest in blockchain-based financial infrastructure as a sustained tailwind for the asset rather than a one-off catalyst.
The case for a turning point rests on several signals. Exchange-traded fund selling pressure appears to be easing.
The start of a new month and quarter historically brings fresh buying interest. And the CLARITY Act, which is working through the US Congress, may prompt investors to begin pricing in regulatory clarity for the industry ahead of any formal passage.
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