The BCBS report reveals growing investment in XRP by global banks, marking a shift in crypto finance.
Analysis of XRP shows potential upside after recent drop, with banks backing its integration into financial operations.

The recent Basel Committee on Banking Supervision (BCBS) report has highlighted a remarkable shift in the global banking sector: a growing confidence in cryptocurrencies, with a particular focus on XRP.

This trend, part of the Basel III monitoring exercise, reveals an active and experimental integration of cryptoassets such as XRP into banking operations. Let’s delve into this phenomenon and its implications.

The Big Picture according to the BCBS: Banks and Cryptoassets

The BCBS report is a milestone, showing how 19 of the 182 banks involved in the Basel III exercise are betting on cryptoassets, highlighting XRP alongside Bitcoin and Ethereum. With 2% of total cryptoassetexposure in XRP, equivalent to €188 million, XRP is positioned as a prominent altcoin among banks, second only to Bitcoin and Ether.

what Does XRP’s Price Behavior Tell Us?

XRP’s recent price behavior presents an intriguing scenario. Since October 12, its value increased by 55%, peaking at $0.73 on November 6, before falling to $0.58. Is this drop merely an adjustment in its upward trajectory?

Tradingview: A corrective wave or a downtrend?

Two scenarios loom: If we consider the November 6 peak as ‘wave 3’, the subsequent decline would be ‘corrective wave 4’, portending a possible immediate reversal. This is reinforced by a 25% RSI on the 4-hour chart. A bounce could take XRP towards the $0.80 area.

Tradingview: A breakout is imminent

In contrast, if the price continues to decline beyond the 0.618 Fibonacci level, it would be interpreted that the uptrend since September has ended, giving way to a broader correction. Even in this scenario, it would anticipate the start of a new uptrend that could catapult XRP above $0.80.

The Inflection Point for XRP

Daily chart analysis indicates that XRP is near the apex of a large symmetrical triangle. A breakout to the upside is what many expect. However, the unknown is whether this move has already begun or is about to start.

We will soon have a clear signal, either through a further fall or an imminent rebound. Interaction with support or resistance will confirm the direction of XRP’s next big move.

The true start of a bullish cycle for XRP will be confirmed with a break above the $0.80 barrier.

XRP in a New Financial Era

The growing interest of banks in XRP, as highlighted by the BCBS report, is more than a positive sign for XRP investors. It represents a paradigm shift in the perception and adoption of cryptocurrencies as serious financial assets.

As the price of XRP moves at a critical point, the attitude of banks towards these digital currencies suggests a future of greater acceptance and expansion. This moment could very well be the prelude to a golden era for cryptocurrencies.

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Filed under: Bitcoin - @ December 23, 2023 1:24 pm