Growing adoption of digital assets in South Korea, particularly with the increasing number of active users, could potentially have a positive impact on the demand for Ripple (XRP) and its price.
South Korea's Financial Services Commission (FSC) recently announced criteria for determining whether digital assets will be recognised as security tokens, a significant step toward regulatory certainty. Because XRP is a payment token, it may not be classified as a security token or be subject to the impending Digital Asset Basic Act, providing it with an edge in the South Korean market.
As per the plans, Ripple price prediction may gain from South Korea's forthcoming regulatory clarification, as the Asia-Pacific region's desire for quick settlements and access to cash develops. According to Rahul Advani, Ripple's APAC policy director, 90% of the company's business is performed outside of the United States, including a large amount in South Korea and Japan.
South Korea has made the first moves to regulate the virtual asset business. The country's Parliament amended the Act on the Reporting and Use of Certain Financial Transaction Information in March 2020.
Coming to Japan, as per the data available from Blockchain Center, most of the ripple has been held by Japanese firms and users since 2021. It’s evident that the current economic condition will also lead to changes in Ripple (XRP) price.
According to Deloitte’s recently published report on “weekly global economic update”, Deloitte has found that the current market economic conditions in Japan are in a good state.
Japan's services PMI rose significantly in February as well. It increased from 52.3 in January to 54.0 in February, the highest level since June 2022 and a sign of rapid expansion in activity. Both domestic and international demand rose sharply.
Also with a solid and rigid regulatory structure, Japan is working on web3 innovations which will surely boost the overall crypto market including XRP.
At the time of publication, the price of XRP is $0.364242 USD, and its 24-hour trading volume is $756,851,312. On the previous day, XRP increased by 1.03%. XRP is now ranked #6 on CoinMarketCap with a market cap of $18,558,444,582 USD. It has a maximum supply of 100,000,000,000 XRP coins and a circulating supply of 50,950,912,949 XRP coins.
If someone goes and sees the graph of Ripple (XRP) and South Korea’s inflation, one could find how both are well correlated to each other. As far as XRP is considered, it’s a Deflationary token with a max supply limitation.
Observing the graph gives many insights about how the XRP reacts to S. Korea’s inflation rate. The Maximum spikes came when the inflation was low in South Korea. It’s worth noticing that even when inflation goes above par, prices surged at some dates. This is due to the fact that XRP and other cryptos are subjected to fluctuations due to various market factors.
Considering all the factors, still, the beauty of this comparison chart could not be ignored. Right now, as the inflation line is becoming flat, so is the XRP price chart.
On a daily chart, XRP isn’t looking good. As per the trendlines, XRP price action is making a Descending triangle pattern which indicates that the prices will fall further. XRP is still maintaining the support at $0.36 and has been tested three times already.
This falling market may be due to the fact that Ripple had some exposure to SVB as per the CEO Brad Garlinghouse and also due to the SEC vs Ripple ongoing lawsuit.
50 Days and 100 Days moving averages are at $0.37 and $0.38 respectively. The 14-Day RSI is creating a similar pattern of Descending triangle. As of now, the RSI stands still at 42 which is considered to be neutral ground. If bears enter the market, the prices may fall to $0.33, the next support level.
South Korea has a solid track record of embracing and utilizing new technologies, such as blockchain and digital assets. This is significant for Ripple (XRP), as it is a popular cryptocurrency that operates on a blockchain network designed for facilitating fast and secure cross-border payments. As per the findings reported by the Intelligence Unit (KoFIU):
South Korea's total market size for digital assets grew to USD 45.9 billion by end of 2021.
The number of active users increased by approximately 23% from 5.58 million at end-2021 to 6.9 million in the first half of 2022.
Considering South Korea's rising digital asset market size and active user base, there is potential for greater demand for Ripple (XRP) as a way of conducting cross-border payments. Moreover, South Korea has been known to have a considerable influence on the XRP market.
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