Ripple processes payments worth $30 billion but XRP price eyes a 13% crash
|- XRP price shows a lack of bullish momentum as it pulls back to retest a stable support level at $0.400.
- Ripple reveals in its latest quarterly report that 60% of $30 billion in payments were done through ODL.
- Investors should brace for the end of the uptrend and the start of a correction to $0.337.
Ripple released its Q4 report for 2022, which is part of its transparency efforts and has been ongoing for a few years now. The document contains a plethora of information focusing on the partnerships, sales, and major developments that it underwent in the months before.
Despite the positive tone of the quarterly report, the XRP price action points to a downward correction.
Ripple dominates as a payments-faced project
Ripple’s Q4 2022 report noted that its payments arm RippleNet processed $30 billion in payments and 20 million in transactions since its inception, out of which, 60% were On-Demand Liquidity (ODL) originations.
ODL is a service that Ripple offers. It eliminates the need for pre-funded accounts for cross-border transfers. Nostro-Vostro accounts in traditional finance have massive funds locked on both ends, but with ODL, these transfers use the XRP token for settlement.
Ripple mentions that in Q4 of 2022, ODL was launched in “France and Sweden in partnership with payments providers Lemonway and Xbaht, respectively.” Similar developments were noted in Africa via MFS Africa, a leading payments gateway in the region.
XRP price continues to struggle
XRP price rallied 29% since January 1 and set up a local top at $0.448. While impressive, this uptrend shies in comparison to the returns of Bitcoin, Ethereum or other altcoin rallies. Regardless, the remittance token sliced through the $0.400 hurdle and set up a local top at $0.431.
Now, a breakdown of the $0.400-to-$0.380 support structure will signal the start of a downtrend. In such a case, XRP price could retest the immediate support level at $0.367, but a breakdown of this level will send it down to $0.337. This move would constitute a 13% downswing.
Although unlikely, a spike in selling pressure that pushes XRP price to breach the $0.337 barrier will open the path for bears to continue their rampage and tag the $0.288 barrier.
XRP/USDT 1-day chart
Regardless of the short-term bearish outlook, XRP price can sidestep this fate by producing a daily candlestick close above the $0.448 hurdle. This flip would provide sidelined buyers a signal to accumulate, triggering another leg-up to $0.4781.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.