Price of XRP increased on Wednesday after its parent company, Ripple, entered into an agreement with SBI Remit to support a cross-border remittance corridor between Japan and the Philippines.
Positive news boosts XRP’s price
The native cryptocurrency of the Ripple blockchain, which is also the sixth-largest digital asset in terms of market capitalization, reached a one-month high of $0.759 after rallying 17.73 percent intraday to reach its one-month high. It was changing hands for as little as $0.514, which was the lowest price in a month.
The partnership between Japan’s largest money transfer provider, SBI Remit, and the Philippines-based mobile payments service Coins.ph provided the bullish impetus for the stock market. With additional assistance from SBI’s digital asset exchange platform, the duo hopes to use Ripple’s On-Demand Liquidity (ODL) to provide more affordable remittance options for the Filipino diaspora in Japan through the use of the cryptocurrency.
Using ODL in conjunction with Ripple’s xRapid cross-border payment service, parties can send funds across international borders while using XRP as a bridge currency. So, the sender converts their local fiat currency into XRP before sending the XRP to their intended recipient via the Ripple blockchain, to explain. As a result, once the XRP tokens have been delivered to the recipient, they are converted back into their local currency.
Technicals skewed to upside
As a result of XRP’s most recent surge, a classic technical setup known as the double bottom was activated, suggesting that Ripple’s token may experience an extended period of bullish momentum in the intervening sessions.
Due to the fact that double bottoms are bullish reversal chart patterns, this is the case. They appear when an asset drops, rebounds, and then drops again to the same or similar level in order to rebound back to its original position. The twice-touched high is referred to as a neckline, and if it is broken to the upside, the prices are expected to rise as far as the distance between the neckline and the double-bottom support.
In this particular instance, the maximum height of a double bottom pattern is $0.25. Because of this, traders may consider $1 as their next upside target if XRP trades above the neckline (which is currently near $0.75).
It has the added benefit of increasing overall upward momentum in cryptocurrency markets, which is a side effect of providing support for XRP. When Elon Musk, the CEO of Tesla, revealed that his private rocket company, SpaceX, was the owner of Bitcoin (BTC), the world’s most valuable digital asset by market capitalization, cryptocurrency enthusiasts were outraged, and the situation quickly escalated.
During a conference called “The Word” last week, which was also attended by Ark Invest’s Cathie Wood and Twitter’s Jack Dorsey, it was announced that the company would be acquired. The fact that Bitcoin is the de facto currency of the internet, according to Dorsey, will play a significant role in Twitter’s future growth and success.
When writing this, the realized correlation between Bitcoin and XRP over the previous 30 days was 0.75, indicating that there is an extremely high likelihood that the two assets will move in lockstep. It is currently trading at more than $40,400, an increase of more than 7% in the last 24 hours.
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