- Reasons for XRP’s price stagnation
- The role of liquidity pools in boosting XRP’s price
- Current XRP price analysis
Ripple's XRP is making strides in the crypto market as 61 Japanese banks plan to adopt its technology for their payment platforms.
Reasons for XRP’s price stagnation
Despite the adoption of the technology, XRP's price has yet to show significant gains. According to Black Swan Capitalist co-founder Vandell, the primary reason is insufficient net inflow. More utility and wider adoption of XRP are needed for a significant price increase.
The role of liquidity pools in boosting XRP’s price
In a discussion on the Digital Outlook channel, Vandell explained that as demand for XRP grows and institutions start using it as a financial instrument, they will buy and hold XRP, reducing the available supply. This will create a supply-demand shock, eventually driving up the price.
Current XRP price analysis
XRP has been moving sideways in a prolonged correction since early July. The support level around 52.2 to 56.2 cents has been tested a few times. If the price breaks out to the upside, a push to 80-90 cents could be possible. Key levels to watch include 60.5 cents, 63 cents, and 66 cents. A breakout above 66 cents could lead XRP to 86 cents or higher. However, if XRP falls below 50.2 cents, the bullish scenario might weaken.
Ripple's XRP technology is increasingly popular, especially among Japanese banks, which could affect the cryptocurrency's price in the future due to growing adoption and usage.
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