A hawkish Bank of Japan, with a higher neutral interest rate (potentially 1.5%-2.5%), would indicate multiple BoJ rate hikes. Multiple rate hikes would narrow US-Japan rate differentials in favor of the yen. Narrowing rate differentials could trigger another yen carry trade unwind. For context, the BoJ previously announced a wide neutral rate band of 1%-2.5% but stated it would declare a tighter range at a later date.

These scenarios would weigh on XRP, push the token toward $1.0, and reinforce the cautiously bearish short-term outlook.

Technical Analysis: Levels to Watch

XRP fell 2.95% on Monday, February 23, following the previous day’s 2.57% loss, closing at $1.3522. The…