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Big Banks Double Down on Ripple According to BCBS Report — Can XRP Recover?

Last Updated November 22, 2023 12:55 PM
Nikola Lazic
Last Updated November 22, 2023 12:55 PM

Key Takeaways

  • Global banks are increasingly integrating XRP in financial operations.
  • BCBS report reveals XRP’s growing role in the banking sector.
  • XRP’s price is at a crucial juncture; there could be a potential bull cycle ahead.

Major global banks are showing increased confidence in cryptocurrencies, particularly XRP. The Basel Committee on Bank Supervision (BCBS) released a comprehensive report  highlighting this significant trend. 

This report, part of the Basel III monitoring exercise, offers an unprecedented look into how some of the world’s leading financial institutions are experimenting with and actively integrating crypto assets like XRP into their operations. 

The BCBS report paints an intriguing picture of the current cryptocurrency landscape in the banking sector.

Out of 182 banks involved in the Basel III exercise, 19 have revealed their crypto asset holdings, showcasing a diverse range of investments primarily in XRP, Bitcoin, and Ethereum. XRP, in particular, has emerged as a notable preference, with its usage accounting for 2% of the total crypto asset exposures, amounting to €188 million.

This positions XRP as the third-largest altcoin in bank engagements, trailing behind Bitcoin and Ether. Meanwhile, the price of XRP has declined since November 6, and after reaching a high of $0.72, it fell to $0.58 today. It was previously in an uptrend from September 11, so was this a minor retracement before another runup? 

XRP Price Analysis 

The price of XRP rose by nearly 55% from its last low on October 12 of $0.473. It reached $0.73 at its November 6 peak and downturned to $0.58 at its lowest point today. This was around 50% retracement from, the last uptrend that started on September 11, with a strong chance that it has ended. 

26% decrease seen
A corrective wave or a downtrend?

XRP’s price is now at a crossroads between scenarios. Either November 6 high was its wave 3; the decrease followed its corrective wave 4. In this scenario, an almost immediate reversal would be seen, and the RSI sitting at 25% on the 4-hour chart supports this outlook. 

Another high to $0.80 area would be expected if the price bounces to the most significant descending resistance level, anchored back to its all-time high of $3.50 in January 2018. 

Alternatively, this would be invalidated if it continues moving below the 0.618 Fibonacci retracement level. In that case, the uptrend from September 11 ended, and the descending move from November 6 is its larger correction. 

However, even in that case, we would be primarily expecting the start of the next even larger uptrend that could lead the price of XRP to a breakout above the $0.80 area. 

Larger uptrend starting
A breakout is imminent

The daily chart shows that the price has approached the apex of a macro symmetrical triangle, and a breakout to the upside would be expected. However, it is still in question whether or not this move has started or is yet to start. 

We will soon receive a confirmation either in the form of further downside movement or an immediate bounce. In the first case, another interaction with the ascending support would cause a bounce. In the second, the interaction with the descending resistance will confirm the impulsiveness behind the uptrend. 

But the final and the most important confirmation of the starting bull cycle for XRP will come with the price surpassing the $0.80 area. 

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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