Ripple expands in Asia despite SEC lawsuit, increasing odds for a 60% breakout
- Ripple’s South-East Asian (SEA) customers actively leverage RippleNet Cloud which facilitates domestic and international transactions.
- Some of the customers like iRemit leverage XRP to enable cross-border payments.
- XRP price seems primed for a 60% upswing as it bounces off the parallel channel’s lower boundary.
Ripple’s growing customer base in SEA could help XRP price appreciate and target new yearly highs.
RippleNet Cloud in Sout-East Asia
In a recent blog, Ripple stated that RippleNet transactions did a 10x in 2020, with Sout-East Asia playing a significant role. The number of deals signed year-on-year more than doubled in this region.
On closer look, Thailand’s Siam Commercial Bank (SCB) contributed heavily to this growth.
As the country’s largest bank in terms of market capital, SCB completed over half a million transactions on RippleNet in 2020 — a 300% growth for inbound remittance volume and 500% outbound remittance growth year-on-year.
Another major stride in Asia was landing BKK Forex, connected to SCB and DeeMoney, a financial solutions provider, via RippleNet Cloud. Through this partnership, more than 45,000 Thai nationals can send money from Singapore.
Perhaps, the most important development comes from RippleNet’s On-Demand Liquidity (ODL) solution, which leverages XRP as a bridge currency to facilitate cross-border payments. In doing so, the need for holding capital in NostroVostro accounts can be freed up.
iRemit, which is the largest non-bank remittance service provider in the Philippines, has joined BKK Forex. It is worth noting that iRemit is an early adopter of ODL and could play a crucial role in triggering a considerable growth in XRP price.
XRP price primed for a 60% upswing
XRP price has created three distinctive higher highs and higher lows since late December 2020. Connecting these swing highs and lows using trendlines shows that Ripple is traversing an ascending parallel channel.
The recent 34% crash has dragged XRP down towards the channel’s lower boundary, where it currently trades.
If buyers rescue the remittances token, a 60% bounce seems more than likely. A solid confirmation will arise after a decisive close above $0.50. In such a case, XRP price could surge to $0.75, which coincides with the breakout line by the Momentum Reversal Indicator (MRI).
While a reversal at $0.75 seems plausible, a breach of this barrier could catapult Ripple by another 40% to $1.00.
XRP/USDT 1-day chart
On the flip side, investors should be wary of a spike in bearish momentum that leads to a breakdown of the channel’s lower trendline at $0.45. If XRP price manages to slice through the 61.8% Fibonacci retracement level, a 16% downtrend to $0.36, coinciding with the 50% Fibonacci retracement level can be expected.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
