Today, Ripple agreed with SBI remit to implement an on-demand liquidity (ODL) plan to the Philippines from Japan. The news caused a jump in the price of its native token (XRP).
Good News Affects XRP Price Positively
After surging by almost 18% in intraday trading today, the sixth most valuable cryptocurrency by market cap, Ripple’s XRP, now trades at a new 4-week high of about $0.760.
XRP is bullish like the entire crypto market. Source: TradingView
Apart from the general bullish trend in the crypto space, the XRP price also surged because its parent company, Ripple, reached an understanding with the SBI remit (major money transfer service firm in Japan) and Coins.ph (foremost mobile payments firm in the Philippines).
The partnership aims to enhance remittance options for Japanese-based Filipinos through Ripple’s on-demand liquidity (ODL). Ripple uses its xRapid international payment system to provide ODL to users wishing to perform financial transactions with XRP as the bridge currency.
There are two stages when XRP is used as the bridge here. The first stage involves the sender converting fiat currency to XRP and sending XRP through Ripple’s blockchain. The second stage involves the receiver converting the received tokens to local cash.
XRP Jump Creates A Double Bottom
After XRP’s sharp rise following the announcement, technical indicators showed a double-bottom, indicating that XRP might remain bullish throughout the temporary trading sessions. It is a proven fact that double bottoms always indicate bullish reversals. They show up when an asset bounces around the same price range within a short period.
When a peak is touched twice, it creates what is termed a neckline. If the asset surges farther up the neckline, its price can rise like the distance between the double-bottom support and the neckline.
XRP double bottom development. Source: TradingView
The chart indicates that the longest distance between the double bottom support and the neckline comes to a price of $0.76. Hence, XRP traders can expect Ripple’s token to hit $1 as its next target. The bullishness in the wider crypto market will also provide more support for this XRP bullish run.
The entire crypto market started a bullish trend after some revelations from Tesla car founder, Elon Musk, at the B conference, where he revealed that SpaceX (another company he founded) has Bitcoin holdings.
You’d recall that Dorsey said Bitcoin would play a significant role in twitter’s future and even went as far as saying the leading cryptocurrency is the standard online currency.
As of this writing, the Bitcoin-XRP 1-month realized correlation is 0.76. Thus, it is likely that both assets will remain bullish. Bitcoin gained 7.5% in the last 24 hours and currently exchange hands at about $40,500.
Despite the positive news, an on-chain analytics firm, Santiment, revealed that some whales have started selling. The firm further noted that there had been a 22% reduction in the number of XRP wallets with over one million XRPs in the last nine days. Also, an estimated 17 whales no longer own their XRP tokens or have reduced their holdings within this period.