The popularity of XRP has surged, but its price remains unpredictable due to an ongoing SEC investigation and regulatory uncertainty. However, there are positive long-term prospects for XRP, supported by SBI VC Trade, which could lead to widespread adoption by Japanese banks by 2025.
XRP, the cryptocurrency of Ripple, has been gaining significant attention in the cryptocurrency world, as indicated by its recent increase in social metrics. However, investors are concerned about the timing of this popularity, considering the volatile price behavior of XRP.
According to CoinMarketCap data, the current price of XRP is approximately $0.5167, showing a decline of 1.45% over the past week and 0.30% over the past 24 hours.
The US Securities and Exchange Commission (SEC) has intensified the debates surrounding XRP, particularly with its recent announcement classifying Ripple Lab’s proposed stablecoin as an “unregistered crypto asset.” Despite being the seventh-largest cryptocurrency by market capitalization, with a value of over $28.7 billion, this regulatory scrutiny has contributed to the cautious attitude of the market towards XRP.
Although the price of XRP has slightly dropped, investor sentiment is different. There is a clear accumulation trend, with high exchange outflow of XRP and a decrease in its supply on exchanges, indicating strong buying demand even in the face of price declines.
However, technical indicators advise caution. The price of XRP has recently fallen below its 21-day moving average, which is a classic bearish signal. Additionally, indicators such as the Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) show notable downward trends, suggesting that the price of XRP may further decline in the near future, possibly reaching a support level around $0.50 and potentially falling even lower to $0.47.
Amidst these challenges, the growth of XRP’s network has slowed down in the past 30 days, indicating a decrease in the generation of new addresses for transactions. This cautious market behavior can be attributed to ongoing regulatory uncertainty.
On a more positive note, the CEO of SBI has made an optimistic prediction that by 2025, every bank in Japan may utilize XRP once SBI VC Trade becomes a new XRP validator. This aligns with previous reports and suggests the possibility of long-term expansion in Japan driven by institutional acceptance.
In conclusion, while XRP’s popularity is on the rise, its price remains volatile due to regulatory concerns. However, there are positive prospects for long-term growth, particularly in Japan, where widespread adoption by banks is anticipated.