Short-term weakness continues to pressure the cryptocurrency market, but some analysts believe the current environment does not reflect the industry’s long-term direction.
Crypto trader Cypress Demanincor highlighted that contrast in a tweet, warning that XRP and the broader digital asset market could face additional downside in the near term while pointing to comments from a Morgan Stanley executive as evidence that institutional confidence in cryptocurrencies continues to strengthen.
The post featured clips from an On-Chain Brokerage Summit discussion in which Morgan Stanley Head of Trading Christopher Larkin said the firm believes cryptocurrencies deserve a place in client portfolios. Cypress described the remarks as a significant development, especially at a time when market sentiment remains cautious.
This could get bad for $XRP 🩸 & the rest of #crypto
Short term…
but long term 👀
Morgan Stanley confirms it is time for crypto exposure in a clients portfolio 🎯 pic.twitter.com/TULbW61d0K
— Cypress Demanincor (@CDemanincor) July 31, 2026
Morgan Stanley Sees a Place for Crypto in Portfolios
During the panel discussion, Larkin said Morgan Stanley expects to announce its formal view on cryptocurrency allocations soon. While emphasizing that every client has a different risk tolerance, he stated that the firm believes there is good reason for investors to allocate a portion of their portfolios to Bitcoin and cryptocurrencies.
Larkin also explained that the conversation extends beyond any single digital asset. According to him, the long-term significance lies in the continued development of blockchain technology and the growing range of digital assets and investment products expected to emerge over time. He added that the innovation taking place across the industry supports the view that cryptocurrencies are becoming a lasting part of the financial landscape.
Cypress described the comments as a major signal from one of the world’s largest financial institutions. He noted that similar statements from firms such as Morgan Stanley and JPMorgan would have been unlikely only a few years ago, arguing that institutional acceptance of digital assets has continued to expand despite recent market volatility.
Macro Risks Continue to Pressure XRP and Crypto
Despite highlighting the positive institutional outlook, Cypress maintained that the short-term market picture remains challenging. He pointed to several macroeconomic and geopolitical factors that continue to weigh on risk assets, including hawkish Federal Reserve commentary, elevated U.S. Treasury yields, strength in the Japanese yen, and ongoing tensions in the Middle East.
According to his analysis, these developments have reduced investor appetite for risk, contributing to a decline in the overall cryptocurrency market capitalization. He also warned that a potential unwinding of the yen carry trade remains one of the largest risks facing global markets, as it could force investors to liquidate positions across equities and cryptocurrencies.
Cypress added that any sustained recovery would likely require easing inflation concerns, lower Treasury yields, reduced geopolitical uncertainty, and stabilization in currency markets. Until those conditions improve, he believes the market could remain vulnerable to additional selling pressure.
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XRP Faces Key Technical Levels Entering August
Turning to XRP, Cypress said sellers continue to defend important resistance levels while buyers attempt to maintain support around $1.03. He identified $1.09 as the first significant hurdle for the asset, followed by resistance near $1.16 and $1.29 before a stronger recovery could begin.
If buyers fail to hold the $1.03 support level, Cypress expects XRP could decline toward approximately $0.91, with a deeper correction toward $0.68 remaining possible under more severe market conditions. He also noted that an extreme liquidity event could create an opportunity for prices to fall into the $0.44 to $0.51 range, levels he said he would personally view as long-term accumulation zones.
While Cypress believes further downside remains the more likely short-term outcome, he emphasized that Morgan Stanley’s latest comments reinforce the idea that institutional adoption of digital assets continues to advance. In his view, that growing acceptance supports a more optimistic long-term outlook for cryptocurrency, even as traders navigate a difficult start to August.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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