XRP price slumps despite Ripple’s FOMO Pay announcing link between Asia and Africa
- Ripple price has broken below the monthly triangle as February kicks off.
- XRP still has an opportunity to define its next directional bias.
- A break and close below $0.3303 on the monthly time frame would solidify the downtrend.
Ripple Payments company FOMO Pay announced the connection between Asia and Africa with Klasha. Citing Klasha CEO Jessica Anuna, "We are excited about our new partnership with FOMO Pay and what this unlocks for merchants in Africa and Asia."
--FOMO Pay--
— Chad Steingraber (@ChadSteingraber) February 1, 2024
Ripple Payments company FOMO Pay announces the connection between Asia and Africa with Klasha.
"We are excited about our new partnership with FOMO Pay and what this unlocks for merchants in Africa and Asia." - Klasha CEO#XRP USED FOR CROSS-BORDER TRANSFERS https://t.co/pNcGtOFHsi pic.twitter.com/7c5CZFZ34J
FOMO Pay is an Asia-based digital payment and banking provider, while Klasha is a commerce solutions provider, powering African payments for global companies to sell cross-border online to and from Africa.
Also Read: Ripple price coils up for a dump as network offloads massive XRP reserve
Ripple FAQs
What is Ripple?
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
What is XRP?
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
What is XRPL?
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
What blockchain technology does XRP use?
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Massive XRP whale exodus beats Ripple’s FOMO Pay announcement
Traders associate the drop in XRP price to a massive whale exodus, after 53 million XRP tokens worth $26.7 million were offloaded to Bitstamp and Bitso exchanges on Wednesday.
Specifically, 29.10 million XRP tokens worth $14.72 million went to Bitstamp, while 23.70 million XRP tokens worth $11.98 million went to Bitso. Both transactions came from an undisclosed wallet. These transactions, added to the recent move by Ripple to offload its reserves, contributed to XRP price slipping below a monthly triangle.
Elsewhere, Solana-based decentralized exchange Jupiter (JUP) surpassed XRP in 24-hour trading volume. Ripple recorded a 45% drop to $1.006 billion, while JUP recorded a 175% increase to $1.065 billion, data on CoinMarketCap shows.
BREAKING: $JUP (@JupiterExchange) surpasses $XRP in 24-hour trading volume. pic.twitter.com/3L2fYJBxXJ
— SolanaFloor | Powered by Step Finance (@SolanaFloor) February 1, 2024
It comes after hype around the JUP listing on multiple exchanges, including Binance and Bitfinex, with the “buy the rumor, sell the news” situation playing out. In this trading strategy, traders buy an asset inspired by speculation that there is an upcoming big announcement such as a listing. Afterwards, they sell the asset once the announcement goes public.
UPDATE: List of Major exchanges that has announced the listing of $JUP so far
— SolanaFloor | Powered by Step Finance (@SolanaFloor) January 31, 2024
1. @binance
2. @Bybit_Official
3. @okx
4. @gate_io
5. @kucoincom
6. @bitfinex
7. @HTX_Global
8. @bitgetglobal pic.twitter.com/kMginpDO92
In doing so, proactive traders are able to buy the asset before everyone wants to buy it and turn a profit by selling it when the asset’s demand and price metrics increase.
In related news, Ripple co-founder and chair Chris Larsen, together with CEO Brad Garlinghouse, came forward on Wednesday to provide clarity after misinformation that the company’s accounts were compromised. Per their update, it was in fact Larsen’s personal XRP accounts that were compromised, with the bad actor stealing $112.5 million worth of XRP that were then frozen on multiple exchanges.
Given some irresponsible speculation and reporting, I want to reiterate that NO Ripple-managed wallets were compromised. Full stop. https://t.co/zxVeCH1Ut0
— Brad Garlinghouse (@bgarlinghouse) January 31, 2024
Ripple price outlook as XRP starts February below a neutral technical structure
Ripple price faced a rejection from the 50-day Simple Moving Average (SMA) at $0.5413, causing XRP to lose the support offered by the lower trendline of a triangle chart pattern. With the Parabolic Stop and Reverse (SAR) trailing XRP price from below at $0.4000, Ripple price could find a turnaround soon.
Meanwhile, the odds still favor the downside as both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) indicators are in negative territory. The RSI is also below its mean line of 50.
An extended fall could see Ripple price test the $0.3303 support, or in a dire case, extend the fall to the $0.1731 support floor.
XRP/USDT 1-month chart
Conversely, with this bearish outlook, the XRP market could cull out the faint-hearted, akin to what happened in 2018. While other projects were going up, Ripple price remained stale before a bold move north, taking off to record an intra-day high of $0.8000 on September 21.
In the meantime, XRP price still has the opportunity to define its next directional bias on the monthly time frame. A break and close below $0.3303 would solidify the downtrend, while a breach of the $0.9941 barrier would confirm a move north.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
