Ripple’s XRP Eyes $3.50 as Japan’s Banking Sector Adopts Ledger Technology
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Ripple’s XRP is up 0.34%, continuing the rise that began on New Year’s Day. If long-term holders (LTH) maintain their recent accumulation, XRP could break above the $2.9 resistance level and set a new all-time high.
XRP Sees Major Profit-Taking, but Long-Term Holders Continue Accumulation Amid Exchange Outflows
Following a 12% increase in XRP’s price on Wednesday, investors booked more than $1 billion, the greatest realized profits since December 16.The profit-taking was primarily by investors who had held XRP in the previous 90 days, as seen by an increase in the Dormant Circulation (90d) indicator. Long-term holders, on the other hand, have taken a slightly different approach, accumulating the short-term holders’ sell-pressure, as evidenced by an increase in the Mean Coin Age indicator.
The Mean Coin Age indicator calculates the average length of time all XRP tokens have been at their current address. The net movement and volume of XRP across top crypto exchanges in the last 24 hours show a similar trend, with net outflows from Binance, OKX, Bitstamp, and Bybit. The only net inflow was reported in Coinbase. Exchange net outflows indicate that buying pressure is dominant, while net inflows indicate the opposite.
Japan’s Banking Sector to Adopt Ripple’s XRP Ledger
In the recent developments, Next Monday, every bank in Japan will incorporate Ripple’s XRP Ledger. SBI CEO Yoshitaka Kitao made the announcement, emphasizing the revolutionary potential of Ripple’s hybrid remittance system.
The XRP Ledger, when combined with the Interledger Protocol (ILP), will simplify cross-border payments and currency conversions.
Japan’s financial sector, with a market capitalization of $6.372 trillion, might make significant investments in the XRP price. Conservative estimates show that a 1% adoption rate could boost XRP’s market capitalization by $63.72 billion, sending its price to $3.50.
More extreme forecasts, based on a 10% sector-wide adoption rate, predict a Ripple price increase to $13.48.
The XRP Ledger’s efficiency and cost-effectiveness make it a great instrument for enabling international remittances. As Japan’s financial institutions adopt Ripple technology, the action might establish a precedent for global banking systems looking to update their cross-border payment arrangements.
