XRP Gains as Japan Classifies Token as Financial Asset
Ripple (XRP) resumed its price recovery, rising to $1.35, as Japan classifies the native utility token as a financial asset, boosting investor sentiment and attracting capital into altcoins.
Trailing its target price, traders anticipate a sharp price recovery, anchored in growing optimism, as Ripple continues to drive cross-border payments.
XRP’s uptick is supported by concrete regulatory progress in Japan and hopeful sentiment for U.S. clarity, outweighing a modest technical setup.
Price analysis revealed that XRP modestly outperforms a flat broader market, primarily driven by positive regulatory developments in Japan, with a modest correlation with Bitcoin’s 1.56% surge.
Based on data from Coinglass, the token trading volume is down 26% to $1.77 billion over the last 24 hours, while XRP’s market capitalisation, the fourth-largest digital asset, settled at $82.6 billion on Saturday.
Japan’s cabinet approved a bill to classify XRP as a financial instrument under the Financial Instruments and Exchange Act, shifting it to a tighter, more transparent regulatory framework.
This long-awaited clarity reduces legal uncertainty for Japanese banks and investors, a key market where over 80% of banks are linked to Ripple’s network.
Crypto analysts said this is a foundational, bullish development that legitimises XRP for deeper institutional use in a major economy. Investors are now watching the bill’s progression toward an expected effective date in fiscal 2027.
Supporting the positive price expectation, market sentiment is also buoyed by anticipation of the U.S. CLARITY Act, with a Senate Banking Committee markup expected in late April.
The passage of the Crypto Act could unlock significant inflows into exchange-traded funds (ETFs). Concurrently, news of a major XRP Ledger partnership launching on April 17 and ongoing infrastructure development contribute to a positive narrative.
The market is pricing in reduced regulatory risk in the U.S. and valuing steady, real-world utility growth. Technically, XRP trades just above its 7-day moving average of $1.34 with a neutral Relative Strength Index, indicating room for movement.
The immediate range is between $1.30 support and $1.40 resistance. The bias is cautiously bullish within a defined range, pending a catalyst. Technical traders advised investors to watch for a close above the $1.35 pivot point to confirm short-term bullish momentum toward $1.40.
During the week, Analyst Javon Marks projects a $16.39 target for XRP based on a measured move from a 2017 pennant pattern. The pattern saw a breakout in late 2024, and the current price near $1.36 is viewed as a typical retracement within the larger structure.
Also, Analyst Dark Defender highlights three technical signals: a break above a multi-year downtrend on monthly charts, Fibonacci extensions pointing to $1.88 and $5.85 targets, and bullish momentum confirmation from monthly Heikin Ashi candles.
This is bullish for XRP’s medium-term trajectory, suggesting the structure has shifted from bearish to neutral to bullish. For the setup to hold, XRP must reclaim $1.88 as support.
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AloJapan.com