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- An analyst observes that banks’ integration of Ripple technologies has been in “test mode” for a while, contributing to the extensive bearish move of the XRP market.
- According to him, a full integration by systemically important banks could push the price above its multi-year resistance level.
A popular analyst who also describes himself as an observer and researcher of the current tech shift, SMQKE, has once again highlighted key aspects in the Ripple adoption journey that could be a catalyst for sustainability, a reasonable value proposition, and a crucial force in the global financial system.
Firstly, the analyst highlighted the several partnership agreements between Ripple and “systemically important financial” institutions, including Santander, Bank of America, and Standard Chartered. While these institutions have been crucial in their journey so far, according to a Ripple-Russia Presentation document cited by the analyst, they have been operating in the “test mode.”
In the same presentation, major confirmation was given that all the major banks partnered with Ripple, including systemically important institutions like Santander, Bank of America, and Standard Chartered, are operating in TEST MODE.✅ If these major banks are still in the… https://t.co/En509TkdgO pic.twitter.com/RuFCO38mag— SMQKE (@SMQKEDQG) August 27, 2024
Having appreciated the price struggle of XRP over the past few years despite its potential utility, the analyst argued that the reasons could be partly linked to these major banks not fully integrating Ripple technology into their daily activities.
If these major banks are still in the testing phase, it means they have NOT YET fully integrated Ripple’s technology into their live, day-to-day operations. This explains the lack of significant price movement for XRP, despite its potential utility.
On the positive side, SMQKE strongly believes that these test phases would conclude, and the underlined banks would consider a full-scale adoption, which would subsequently see XRP trading within the deserved range.
How XRP Could Benefit from a Full-Scale Adoption by the Banks
According to the analyst, the involvement of these “systemically important Banks” is a positive sign for the price of XRP. His reason is that a conclusion of the ongoing phase would trigger an improved demand around the asset, force investors to increase their holdings, flip market sentiment to bullish, and drag the price to a new height.
The successful conclusion of these tests will create a demand for XRP as a utility asset in financial transactions, significantly driving up its price. The market may currently be in a “wait-and-see” mode, with investors holding off on driving up XRP’s price until they see clear signs of full adoption and regulatory clarity. Once these tests transition to live operations, it may very well trigger a reevaluation of XRP’s value.
Another hurdle that has acted as a headwind against the significant surge of XRP is the multi-year legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs. Fortunately, as we reported, this has just been concluded, with the blockchain company ordered to pay $125 million in penalties.
Subjecting the asset to technical price analysis, a popular trader, Tylie Eric, predicted that XRP could surge by 5,000% to hit $32. According to him, a bullish pattern has been forming since early 2021 after the price began falling from the $1.96 high. This has been characterized by multiple lower highs and higher lows, forcing a tighter range. Because the asset has undergone an extended period of consolidation, a break out from the pattern is expected to cause an explosive run, according to Tylie Eric.
At press time, XRP was trading at $0.57, having declined by 0.08% in the last 24 hours.
