Rakuten's 44 Million Users… XRP Trapped at $1.37, When Will It Explode?

▲ Rakuten, XRP/AI Generated Image ©

XRP (Ripple), which is undergoing a correction after hitting a short-term resistance level amidst macroeconomic uncertainties, is internally accumulating explosive upward energy, contrary to its outward appearance. With a super-large positive catalyst – the integration of Japanese retail giant Rakuten's $23 billion worth of loyalty points – coupled with record-breaking accumulation of over 1.1 billion XRP by large whales, and moves toward the inclusion of spot Exchange Traded Funds (ETFs) in the institutional sphere, some market participants are projecting a rosy outlook, suggesting it could soar to $3.26 within the next six months.

According to investment specialized media TradingNews on April 30 (local time), XRP has failed to break past the $1.50 resistance level and is currently trading around $1.37, showing a flat trend. This represents a 62% drop from its peak in July. The media diagnosed that the current stagnant price movement is not due to fundamental issues but rather to macroeconomic noise, such as high oil prices and receding expectations for Federal Reserve interest rate cuts, as well as thin liquidity driven primarily by derivatives. Indeed, on the daily chart, key technical indicators such as the Relative Strength Index (RSI), Average Directional Index (ADX), and Moving Average Convergence Divergence (MACD) have yet to form a clear trend, limiting short-term gains.

However, the fundamental demand drivers hidden beneath the chart are stronger than ever. The most notable hidden catalyst is the integration with the Rakuten Wallet ecosystem. According to virtual asset analytics firm Santiment data, social interest in XRP surged to its second-highest level in two years immediately after this news. With Rakuten users, who have 44 million active accounts, now able to convert 3 trillion loyalty points worth approximately $23 billion into crypto and use them at over 5 million affiliated stores, structural and recurring real buying demand is expected to be generated, going beyond mere speculation.

The influx of institutional capital and the movements of large whales also bolster the possibility of a rally. NYSE Arca recently submitted a proposed rule change to include assets in commodity-based trust shares as qualified portfolios. According to SosoValue data, approximately $90 million in net inflows into related spot products over the past three weeks demonstrated strong institutional confidence. While open interest in the derivatives market also increased significantly, whale wallets holding over 10 million XRP accumulated 1.15 billion XRP in just 11 days, showing a typical accumulation pattern in preparation for an upcoming surge.

The stellar corporate growth of issuer Ripple and favorable policy winds also provide a solid backdrop. Ripple, which has surpassed a $50 billion valuation, recently proved its overwhelming competitiveness in the cross-border remittance market by instantly settling a $59 million payment for a mere $0.000188 fee. Furthermore, if the long-awaited U.S. cryptocurrency market structure bill, the Clarity Act, becomes a reality, regulatory uncertainties that have hindered institutional investment for years will be resolved, opening the floodgates for explosive liquidity inflows.

Experts advise that now is a transitional period for a massive trend reversal, requiring a thoroughly calculated strategy. The analysis suggests treating the $1.31 to $1.34 range as a strong defense line and accumulation opportunity, and once $1.42 is decisively broken on a daily basis, attention should shift towards $1.50 and $1.80. When macroeconomic pressures ease and major positive catalysts like Rakuten integration and the enactment of the Clarity Act begin to create significant synergy, the current suppressed price could explode instantly, holding immense potential to easily surpass the $3 mark in the mid to long term.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*