XRP is the most popular cryptocurrency in Japan, according to a recent study by the City of Hong Kong University that is currently circulating on Twitter. According to the study, XPR is even more popular in the Land of the Rising Sun than in the United States of America. Popular XRP community member Crypto Eri drew attention to it.
With nearly 1.36 billion units traded in February 2022, XRP was the cryptocurrency with the highest spot trading volume in Japan. In the same month, Bitcoin had a trading volume of about 180,000 units, the study claims in regards to the chart below.
Furthermore, the Hong Kong-based study cites a June 12 survey by Japanese cryptocurrency exchange BITMAX, according to which XRP’s popularity among Japanese traders is comparable to Bitcoin’s. 1,498 respondents (25%) said XRP was their favorite cryptocurrency, compared to 26% who cited BTC as their preferred crypto asset. 9% named Ethereum ETH in third place.
That’s Why XRP Is So Popular In Japan
The study attributes XRP’s success in Japan to Ripple’s partnership with SBI Holdings. “Many Westerners don’t understand why Ripple has become so popular in Japan. Once one is familiar with Japanese customs and the confidence that Japan’s largest venture capital fund has in Ripple, the whole thing becomes clear,” the study says.
So the key factor behind the popularity is allegedly the investment from “Japan’s most prestigious venture capitalist.” According to the study, this is the main driver of Ripple’s success in Japan, as Japanese – as a 2022 study found – tend to give institutions a higher standing than the West.
In 2017, SBI Holdings invested nearly 300 million in Ripple. The two companies formed a joint venture, SBI Ripple Asia, and in April 2019, SBI CEO Yoshitaka Kitao became a board member at the fintech company. Remarkably, the SEC complaint declares SBI’s investment as an improper sale of a security to SBI Holdings.
Ultimately, SBI’s Ripple partnership gives XRP unparalleled credibility in the country, the research asserts. Putting a damper on XRP’s lower popularity in the U.S. is certainly the lawsuit filed by the U.S. Securities and Exchange Commission, which has caused U.S. exchanges to delist the XRP token.
XRP Bulls Lack Strength
A look at the 1-day chart of XRP reveals that the bulls still could not gain the upper hand against the bears. At press time, XRP was trading at $0.3928, ranging between $0.3801 and $0.4052.
An upside breakout could give the bulls renewed strength to rise above the 200-day Exponential Moving Average (EMA). The 200-day EMA is widely used as indicators of long-term trends. When a price crosses above the indicator, it is a technical signal of a trend change.
Afterwards, the price level of $0.445 could come into focus. It served as a key support on the 1-day chart from mid-September to early November 2022. Therefore, this price level may be considered the ultimate challenge for XRP bulls.
Featured image from iStock, Chart from TradingView.com