XRP continues to test a major technical support level amid persistent bearish momentum, even as Thailand advances a digital asset tax policy that could encourage regulated cryptocurrency participation and exchange outflows signal cautious positioning among holders.

Thailand's Crypto Tax Policy Draws Market Attention

John Squire shared Thailand's reported digital asset tax announcement via a recent social media post, referencing a 0% capital gains tax rate for qualifying digital assets traded through licensed cryptocurrency platforms.

While the post connected Thailand's announcement to the XRP ecosystem through symbolic visuals, the reported tax treatment extends well beyond XRP. Other eligible digital assets may receive identical treatment under regulated conditions.

Thailand's regulatory framework for digital assets dates back to the 2018 Digital Asset Act, which brought cryptocurrency exchanges and token issuers under the supervision of the Securities and Exchange Commission of Thailand. The reported zero capital gains tax policy for licensed-platform trading builds on that existing structure and could reduce friction for participants who transact through approved venues. Clear taxation frameworks tend to improve certainty for investors and financial businesses, and digital asset firms generally favor transparent regulatory environments. Thailand's approach reflects continued policy development rather than restrictive oversight, and it places the country alongside a growing list of jurisdictions refining crypto tax rules to balance investor participation with oversight.

XRP Holds Key Technical Support

XRP's technical outlook remains centered on a descending market structure. Price continues to respect a falling trendline established during July, with lower highs still defining the prevailing short-term trend.

XRP is currently trading within the $1.04–$1.05 range, a significant support zone. The Relative Strength Index (RSI) has not reached its neutral 50 mark over the past several sessions, indicating that sellers maintain an advantage over buyers. The Moving Average Convergence Divergence (MACD) also remains below the zero line.

Resistance is building around the $1.06–$1.07 level. A decisive bullish move above that threshold would be needed to challenge the current structure. Otherwise, the broader bearish pattern remains technically intact. XRP's price action continues to unfold against the backdrop of the long-running U.S. SEC v. Ripple litigation, in which a July 2023 court ruling found that programmatic sales of XRP on public exchanges did not constitute securities offerings. Subsequent proceedings on remedies and institutional sales remain ongoing.

Exchange Flows Reflect Cautious Positioning

Exchange flow data continues to show more XRP leaving centralized platforms than entering them. Net withdrawal bars dominate the longer-term dataset, reflecting persistent outflows across the observed periods.

The largest recorded exchange outflow occurred in late November, when withdrawals approached approximately $170 million during a period of heightened volatility. Such large movements typically reflect portfolio repositioning by larger holders, and sustained outflows from exchanges are commonly associated with transfers to self-custody wallets, though individual motivations cannot be determined from aggregate flow data alone.

Netflows have gradually become less extreme since that peak withdrawal period. Daily inflows and outflows now appear relatively balanced, suggesting exchange activity has steadied compared to previous months.

Despite the persistent outflows, the broader bearish trend for XRP has not been reversed. Market sentiment, liquidity, derivatives positioning, and macroeconomic conditions remain the primary factors influencing market direction. Traders continue to monitor support levels, momentum indicators, and regulated market developments in combination.