[Is the collapse of XRP price related to the Japanese banking industry crisis? 】
Although XRP ended July outperforming its peers, the price has recently remained below $0.7, leaving stakeholders concerned about its lackluster performance. This price drop is related to Japan's ongoing banking crisis.
Japan's banking industry has faced challenges since mid-July, when the Bank of Japan intervened in foreign exchange markets to stabilize the yen and prevent it from falling below 162 yen/dollar. Still, the exchange rate slipped to about 157.5 yen/dollar. To combat speculators, the Bank of Japan took measures that led to a market liquidation and investors selling.
This affected asset managers and brokers began selling heavily. Major allies of Ripple Labs such as SBI Holdings and Mitsubishi UFJ Financial Group, which have operations in Japan, also had to take losses and may have sold their XRP positions, leading to a massive sell-off of XRP in the market.
Analysts believe that despite bullish predictions for XRP, Japan’s banking industry issues could be a significant factor in its price decline. XRP has been consolidating within a symmetrical triangle for six years, which typically signals a bullish rally. Investors expect XRP to rise towards $0.9 to $1, but chaos in Japan’s banking industry makes breaking above these resistance levels difficult.
At the time of writing, XRP is down a massive 5.18% in the past 24 hours to $0.5763, which remains low compared to forecasts.
