The price of XRP swung higher on Wednesday as its parent company, Ripple, entered into an agreement with SBI Remit to support a remittance corridor from Japan to the Philippines.
Positive news boosts XRP price
The native cryptocurrency of Ripple, also ranked as the sixth largest digital asset by market capitalization, reached a one-month high of $0.759 after rising 17.73% on the day. At the monthly low, it was trading at $0.514.
The upward boost came through a partnership between SBI Remit, the largest money transfer provider in Japan, and Philippines-based mobile payment service Coins.ph. With additional help from SBI’s digital asset exchange platform, the duo aims to use Ripple’s On-Demand Liquidity (ODL) to offer more affordable remittance options to Filipino expats in Japan.
ODL cross-border payment service via Ripple’s xRapid allows parties to send money using XRP as a bridge currency. In other words, the sender first converts the local fiat currency to XRP and sends it to the receiver via the Ripple blockchain. In turn, the recipient, upon receiving the XRP tokens, converts them back into his local currency.
Technical elements veered to the upside
XRP’s recent jump also activated a classic technical setup known as the double bottom, which indicates that the Ripple token may undergo an extended bullish momentum in the interim sessions.
This is because double bottoms are bullish reversal chart patterns. They appear when an asset goes down, or rebounds, and drops back to the same or similar level to the rebound. The top touched twice is called the neckline, which if broken to the upside is expected to send prices as high as the space between the neckline and double bottom support.
The maximum height of the double bottom pattern is $0.25. Therefore, a break of the neckline (near $0.75) could make XRP traders look forward to $1 as their next bullish target.
The support for XRP is also a bullish momentum in the broad cryptocurrency market. It started after Tesla CEO Elon Musk revealed that his own rocket company, SpaceX, owns Bitcoin (BTC), the world’s leading digital asset by market capitalization.
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The revelation came during last week’s “The ₿ Word” conference, which was also attended by Kathy Wood of Ark Invest and Jack Dorsey of Twitter. Dorsey described Bitcoin as a huge part of the future of Twitter, noting that it is the de facto currency of the Internet.
Bitcoin’s validated 30-day correlation with XRP is 0.75 at the time of writing, indicating that the assets may move in tandem. The price of BTC is up over 7% in the past 24 hours, with over $40,400 trading at the time of writing.
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