The XRP community is focusing on the wrong metric—the price when more than $4 billion worth of assets have been tokenized on the XRP ledger. The price should be the least of worries, as the coin may spend months consolidating or bleeding, but when the time arrives, it skyrockets, says analyst.
XRP barely holds above the $1 psychological level
XRP has crashed below the bullish falling wedge, making the community worry about what would happen to the price. A conventional breakout from a wedge would produce a rally that would be the same height as the height of the wedge at its widest point. Nonetheless, going against the normal breakout rules, XRP has crashed below the lower trendline of the wedge.
With the price just holding above the $1 level, the market is concerned about whether XRP will be able to hold above this level or if there will be a flush below this level. However, that is the wrong question that the community is seeking answers for, according to analyst Floppy.
He stated that “crypto spends months bleeding.
Months going sideways.
Months making everyone lose hope.
Then suddenly…
The switch flips.
Sentiment changes.
Liquidity returns.
Everyone rushes back in at once.”
Real world asset tokenization increases by 55x
However, the community is overlooking the fact that more than $4 billion in assets are being tokenized on the ledger. This is a 55x increment within the past 1.5 years. And the specialty about the tokenization is that $2.6 billion has been during the past 6 months.
As more assets are issued and transferred on the ledger, demand for its infrastructure could increase, potentially generating greater transaction activity and utility for XRP. If tokenization continues to accelerate and translates into sustained on-chain activity, it could improve investor confidence and create stronger long-term demand for XRP, although greater tokenized asset value does not automatically translate into a higher XRP price.
