The demand for XRP has been on the rise, but its price remains unstable due to an ongoing investigation by the SEC and regulatory uncertainty. However, there are positive long-term prospects for XRP, supported by SBI VC Trade, which could lead to its widespread adoption by Japanese banks by 2025.
XRP, the cryptocurrency associated with Ripple, has been gaining significant attention in the cryptocurrency world. Recent increases in its social metrics indicate a surge in popularity. However, investors are concerned about the timing of this attention, considering the price behavior of XRP.
According to data from CoinMarketCap, the current price of XRP is approximately $0.5167, showing a decline of 1.45% over the previous week and 0.30% over the past 24 hours.
The SEC’s recent announcement regarding Ripple Lab’s proposed stablecoin being classified as an “unregistered crypto asset” has added to the ongoing debates surrounding XRP. Despite being the seventh-largest cryptocurrency by market capitalization, with a value of over $28.7 billion, this regulatory scrutiny may be influencing the cautious approach 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 outflows from XRP exchanges and a decrease in its supply on exchanges. This suggests a strong buying demand even in the face of price declines.
However, technical indicators advise caution. The price of XRP recently fell below its 21-day moving average, which is considered a bearish signal. Additionally, indicators like the Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) show notable downward trends, indicating that the price of XRP may further decline in the near future, potentially reaching a support level around $0.50 and even falling to $0.47.
Amidst these challenges, the growth of XRP’s network has decreased over the past 30 days, suggesting fewer new addresses being generated for transactions. This could be a sign of market caution due to ongoing regulatory uncertainty.
On a more positive note, the CEO of SBI expressed optimism about the future of XRP in Japan. It is predicted that by 2025, every bank in Japan may use XRP once SBI VC Trade becomes a new validator for the cryptocurrency. This development indicates the potential for long-term expansion in Japan driven by institutional acceptance.
In conclusion, while the price of XRP remains volatile due to the SEC investigation and regulatory uncertainty, there are promising prospects for its future, especially in Japan where it could see widespread adoption by banks.