2 months ago
22
The post Ripple News: Why Isn’t XRP Price Soaring Despite Major Adoption and SEC Win? appeared first on Coinpedia Fintech News
Ripple’s XRP is making strides in the crypto market as 61 Japanese banks plan to adopt its technology for their payment platforms. Unlike the U.S. system Zelle, Japan is building an entirely new platform using Ripple’s cutting-edge technology from the start.
While this is old news, one question on everyone’s mind is ‘why hasn’t XRP’s price surged yet, despite this adoption?’ According to Vandell, co-founder of Black Swan Capitalist, it’s all about net inflow. While banks are using XRP, the volume being used for liquidity and transactions isn’t enough to significantly drive up the price. To see a real price increase, there needs to be more net inflow, which will come through greater utility and wider adoption.
In a discussion on Digital Outlook channel, Vandell also explained the role of liquidity pools. As demand for XRP grows and institutions start using it as a financial instrument, they’ll buy and hold XRP, reducing the available supply. This will eventually create a supply-demand shock, as the limited supply gets locked up, driving up the price.
Moreover, Ripple hasn’t released any XRP to exchanges since 2019, further tightening the supply over time. So while it’s a gradual process, the combination of growing adoption, liquidity use, and limited supply could lead to significant price movements in the future.
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, and the price could break out to the upside soon. If the correction continues, a push to 80-90 cents could be possible. Key levels to watch include 60.5 cents, 63 cents, and 66 cents, with a breakout above 66 cents potentially leading XRP to 86 cents or higher. However, if XRP falls below 50.2 cents, the bullish scenario might weaken.
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