Bank

bullish

2024

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<p dir="ltr">Despite ending July on a high note compared to its peers, <a href="https://u.today/xrp-price-skyrockets-8-to-print-best-month-of-year">XRP's price</a> over the past few days remains low, with levels still below the $0.7 mark. Stakeholders have expressed concerns over the continued poor performance of XRP in the broader cryptocurrency space. This significant price slump seems connected to the ongoing <a href="https://x.com/DarioCpx/status/1819206001964601701">banking crisis</a> in Japan.</p>
<h2 id="japan-s-banking-sector-challenges-and-xrp-ties">Japan's banking sector challenges and XRP ties</h2>
<p dir="ltr">Specifically, the banking sector in Japan has been faced with challenges from around mid-July, when the Bank of Japan decided to carry out interventions in the forex market as a measure to stem the falling yen. Notably, the FX rate was tethering near 162 yen/U.S. dollar, and the bank’s intervention was important to prevent it from slipping below that level.</p>
<blockquote>
 <p lang="en" dir="ltr">How do you say “banking crisis” in Japanese?And yet so many were bullish something I could never understand 🙈 <a href="https://t.co/IluTxLSqKt">https://t.co/IluTxLSqKt</a> <a href="https://t.co/L1v22jaz3b">pic.twitter.com/L1v22jaz3b</a></p>— JustDario 🏊‍♂️ (@DarioCpx) <a href="https://twitter.com/DarioCpx/status/1819206001964601701?ref_src=twsrc%5Etfw">August 2, 2024</a>
</blockquote> 
<p dir="ltr">The intervention included going after lightweight hedge funds by trading against them, but the currency slipped to approximately 157.5 yen/dollar recently. The Bank of Japan deployed similar measures against heavyweight speculators, resulting in severe liquidations as they resorted to selling their positions.</p>
<p dir="ltr">Overall, this impacted the asset managers as brokers began selling massively. Given that the top allies of Ripple Labs and, by extension, XRP, like&nbsp;<a href="https://u.today/sbi-and-franklin-templetons-joint-venture-fuels-xrp-etf-talk">SBI Holdings</a>, Mitsubishi UFJ and others have established businesses in Japan, they have had to take the hit.</p>
<p dir="ltr">Thus, selling off their positions to stay afloat might explain the dumping of XRP shares onto the market.</p>
<h2 id="how-feasible-are-analysts-predictions-for-xrp">How feasible are analysts' predictions for XRP?</h2>
<p dir="ltr">Analysts believe this might be a significant factor in the recent price slump of the asset despite promising predictions for the sixth-largest cryptocurrency by market capitalization. As <a href="https://u.today/xrp-six-year-triangle-breakout-signals-massive-upside-for-xrp">reported</a> by U.Today, XRP has been on a six-year run of consolidation within a symmetrical triangle, and this usually precedes a bullish rally.</p>
<p dir="ltr">Stakeholders, particularly investors in the XRP community, anticipate a <a href="https://u.today/is-xrp-on-verge-of-another-golden-cross">price rally</a> that could lift XRP to the $0.9 to $1 level. Getting the asset to cross these resistance levels seems like a difficult task at the moment, given the banking mess created in Japan.</p>
<p dir="ltr">As of the time of writing, XRP has dropped by a massive 5.18% to $0.5763 within the last 24 hours and remains low compared to projections.</p>

Is XRP Price Slump Connected to Japan's Banking Crisis?

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