UK’s Financial Watchdog Recognizes XRP as a Utility Token — 35% Upside on the Table

FCA Recognition of XRP as a Utility Token Sparks Market Optimism In a landmark development for the cryptocurrency space, the UK’s Financial Conduct Authority (FCA) has officially recognized XRP as a utility token, according to crypto observer SMQKE. This decision positions XRP in a favorable regulatory light, potentially paving the way for broader adoption and increased market activity.

Utility tokens, unlike securities, are designed primarily to provide access to a platform or service rather than serve as an investment vehicle. By classifying XRP as a utility token, the FCA is signaling that the digital asset is not subject to the same stringent regulatory requirements as securities.

This distinction is crucial for exchanges, institutional investors, and retail traders, as it reduces compliance hurdles and enhances operational clarity. SMQKE highlights that the FCA’s recognition of XRP marks a major milestone amid a global drive for clearer crypto regulation.

This regulatory clarity in the UK strengthens investor confidence and opens doors for new partnerships and technological adoption. Therefore, the FCA’s recognition bolsters XRP’s role in shaping the future of digital finance.

Ripple, the company behind XRP, has championed a functional, widely accepted digital payment network, and this regulatory acknowledgment aligns with its mission to enable seamless, compliant cross-border payment. Meanwhile, the FCA plans to formally regulate cryptocurrency businesses in 2026, adopting a framework tailored to digital assets rather than traditional markets.

The approach will relax certain conventional requirements while strengthening others, aiming to address the unique risks of crypto trading effectively. XRP Shows Early Signs of Breakout as Bullish Momentum Builds According to market commentator Crypto Cipher, XRP is exhibiting early signs of a potential breakout after weeks of compression within a descending channel.

The cryptocurrency is currently trading at $3. 03, maintaining a position above its previous resistance level of $2.

95, a move that may signal a shift in market sentiment. Technical analysis suggests that XRP’s near-term upside targets are $3.

12 and $3. 32, with more significant resistance forming around $3.

59. Should the market muster enough momentum to clear these hurdles, analysts see the path open toward $4.

00, offering a potential upside of approximately 35% from current levels. Such a move would mark a meaningful recovery and could attract renewed interest from both retail and institutional investors.

On the downside, support remains strong around $2. 60, a level where buyers have historically stepped in to defend the price.

This base has proven resilient during periods of volatility, providing a safety net that may help prevent a deeper pullback. The combination of firm support and the current breach of prior resistance paints a bullish technical picture for XRP in the short term.

Crypto Cipher notes that XRP’s long-standing descending channel shows signs of exhaustion. After weeks of compression, pent-up buying pressure may be building, suggesting traders are accumulating ahead of a potential breakout.

Meanwhile, a fractal formation shows that XRP has all it takes to surge to $6-$7 by mid-November. Conclusion The FCA’s recognition of XRP as a utility token not only legitimizes its role in the digital economy but also positions it as a frontrunner in bridging traditional finance with blockchain innovation.

With clearer regulatory backing, XRP is better placed to attract institutional adoption, strengthen its use in cross-border payments, and fuel broader integration into mainstream financial systems. With upside targets at $3.

32, $3. 59, and potentially $4.

00, the coming weeks will be pivotal for XRP. Sustained momentum could unlock a 35% rally, cementing its status as one of the cycle’s standout opportunities.