The surge in popularity of XRP, the cryptocurrency of Ripple, is evident from its recent rise in social metrics. However, investors are concerned about its price behavior, especially in light of the ongoing SEC investigation and regulatory uncertainty.
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 SEC’s scrutiny of Ripple Lab’s proposed stablecoin has further intensified the debates surrounding XRP. Despite being the seventh-largest cryptocurrency with a market capitalization of over $28.7 billion, this regulatory attention may be influencing the cautious sentiment in the market.
Although the price of XRP has dropped slightly, investor attitudes are different. The high exchange outflow of XRP and the decreasing supply on exchanges indicate a clear accumulation trend, suggesting strong buying demand even in the face of price declines.
However, technical indicators raise caution. The price of XRP has recently fallen below its 21-day moving average, which is a classic bearish signal. Additionally, indicators like the Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) show notable downward trends, indicating a potential further drop in the price of XRP in the near future. It may reach a support level close to $0.50 and possibly even fall further to $0.47.
Amid these challenges, the growth of XRP’s network has slowed down in the past 30 days, suggesting fewer new addresses being generated for transactions. This cautious market sentiment can be attributed to the ongoing regulatory uncertainty.
On a positive note, the CEO of SBI, a well-known XRP enthusiast, has expressed optimism that by 2025, every bank in Japan may use XRP once SBI VC Trade becomes a new XRP validator. This aligns with previous reports and hints at potential long-term expansion in Japan driven by institutional acceptance.
Overall, while the popularity of XRP is on the rise, its price remains volatile due to the SEC investigation and regulatory uncertainty. However, long-term prospects for XRP seem promising, supported by SBI VC Trade and the potential wide adoption by Japanese banks in the future.