XRP, the native token of Ripple, the international money transfer company, has not been doing well in the cryptocurrency market for long now. According to an analysisby global cryptocurrency exchange OKEx, this is due to several reasons which many XRP fans probably don’t know about.
The first is that XRP is mainly used as a source of liquidity to make international money transfers. The problem with this, according to OKEx is that it makes the cryptocurrency of little use since it is not used as a medium of exchange like Bitcoin. Part of the analysis reads:
“Although there were more than 100 financial institutions have been using Ripple’s RippleNet and RPCA to move money globally, however, the majority of them did not use XRP as a medium. That means institutional adoption of XRP remains relatively low, and that won’t produce any help XRP in terms of having positive price actions.”
Another reason cited by OKEx is the fact that competition is building up in the XRP use niche. Ripple is certainly a top remittance settlement platform with more than 100 financial institutions.
XRP however still doesn’t seem to be making headway in the market because there is stiff competition in the industry as other companies keep getting into the cross-border payments business.
For instance, JP Morgan-launched JPM Coin and the more recently launched Libra by Facebook alongside traditional companies such as SWIFT and the latest FedNow announcement by the Federal Reserve are all-powerful competitors that could make Ripple lose ground.
Also comparing XRP to Bitcoin, OKEx mentioned that the massive 100 billion XRP in circulation is a major reason why price does not go up due to overly abundant supply. This is because unlike Bitcoin, XRP is not mined and all 100 billion are already in circulation although Ripple controls the majority of it.
Bitcoin, on the other hand, has a total supply of 21 million and is released a little at a time by miners, giving price enough time to go up.
With these factors combined, XRP is in a tight condition and though it is great for payments, it may not see any significant price growth until institutional interest is attracted. Until then, the hope of XRP reaching some high price as expected by its holders and fans may never be realized.
Analysts expect XRP to shoot up soon or get crushed by the bear
Some analyses have even claimed that Ripple’s XRP is forming a falling wedge pattern, which means the cryptocurrency is in for a bullish breakout if it crosses the 30 cent mark.
The XRP community has stated multiple times that the prices will shoot up massively, along with a marked increase in volume. Currently holding below the 30 cent mark, the third-largest cryptocurrency has struggled to rise to a significant number in recent times, forcing some members of the ‘army’ to predict ultimatums for the digital asset. One cryptocurrency enthusiast recently predicted a trendline that showed that if XRP does not break resistance soon, it will be going down under soon.
At press time, Ripple’s XRP trades for $0.26 with a market cap of $11.44 billion. Ripple’s native digital asset holds a 24-hour market volume of $1.3 billion after a 2.2 percent drop in value in the daily spectrum. Currently, the cryptocurrency had fallen even further and was trading for $0.256 with the immediate support holding at $0.247.
The Relative Strength Index (RSI) is closer to the oversold zone, which means that the selling pressure is much higher than the buying one. The fall in buying pressure has just happened throughout the past few weeks after the bear took control of the market.
The Chaikin Money Flow indicator has fallen below the zero line after holding much above it. The fall signifies that the capital leaving the market is more than the capital coming into the market. The Parabolic SAR was holding above the price candles, which means that the cryptocurrency was going through a bearish phase.
Many members of the community were of the opinion that they did not expect XRP to fall to such a low, but the sentiment with the cryptocurrency was still strong. The MACD indicator had moved in a sinusoidal pattern with the signal line crossing the MACD line, another bearish sign.
Many analyses have further claimed that the cryptocurrency is forming a falling wedge pattern, which meant that the cryptocurrency is in for a bullish breakout if it crosses the 30 cent mark. A piece of positive news that XRP received recently was when it got added on the Coinbase Card, along with tokens such as BAT and ZRX. Zeeshan Feroz, CEO at Coinbase UK, had said,
“By more than doubling the number of assets our customers can spend on Coinbase Card, as well as introducing the card to 10 new countries, Coinbase continues to help drive crypto’s role as a utility, and not just an investment.”
Ripple (XRP/USD) forecast on November 18 — 24, 2019
Cryptocurrency Ripple (XRP/USD) is trading at 0.2599. Cryptocurrency quotes are trading below the moving average with a period of 55. This indicates a bearish trend on Ripple. At the moment, cryptocurrency quotes are moving near the lower border of the Bollinger Bands indicator stripes.
Ripple (XRP/USD) forecast on November 18 — 24, 2019
As part of the Ripple course forecast, a test level of 0.2800 is expected. Where should we expect an attempt to continue the fall of XRP/USD and the further development of the downward trend. The purpose of this movement is the area near the level of 0.2170. The conservative sales area for Ripple is located near the upper border of the Bollinger Bands indicator strip at 0.3150.
Cancellation of the option to continue the depreciation of the Ripple will be a breakdown of the upper border of the Bollinger Bands indicator stripes. As well as a moving average with a period of 55 and closing quotations of the pair above the area of 0.3320. This will indicate a change in the current trend in favor of the bullish for XRP/USD. In case of breakdown of the lower border of the Bollinger Bands indicator bands, we should expect an acceleration in the fall of cryptocurrency.
Ripple (XRP/USD) forecast on November 18 — 24, 2019 implies a test level of 0.2800. Further, it is expected to continue falling to the area below the level of 0.2170. The conservative area for selling Ripple is located area of 0.3150. Canceling the option of falling cryptocurrency will be a breakdown of the level of 0.3320. In this case, we should expect continued growth.
Santander Launching Ripple-Powered Payments in Six New Corridors, Banking Giant Not Utilizing XRP
Spanish banking giant Santander says it will soon expand its use of Ripple’s cross-border payments platform.
In a recent conference held by the Institute of International and European Affairs, managing director of digital investment banking at Santander, John Whelan, talked about the company’s efforts in blockchain.
He says the company will bring its Ripple-powered payments platform called One Pay FX to all 10 of its main corridors in the near future.
“We actually have a blockchain-based international payments system that’s running on four of our corridors: Brazil, Mexico, UK, Spain. It’ll be on all 10 soon. Instant transfers at very, very tight spreads: 30 basis points.
It’s a nice user experience. I use it myself. I sent money to the United States. It’s available same-day. Fantastic, and at a guaranteed rate.”
In April of this year, Santander executive chair Ana Botín said One Pay FX is now powering more than half of Santander Group’s FX payments.
“With this new initiative that is already in place, we’re actually covering 50% of all the FX payments that the Santander Group does annually.
And it works really well, because the rails that we’re using – which, as you say, we’ve collaborated with Ripple – we’ve been testing those for two years, actually with our own employees. And it works.
It’s safe. It’s fully compliant, and obviously we’ve made sure we comply with all local regulations. So you’re in safe hands.”
One Pay FX launched in October of 2018.
It utilizes Ripple’s primary cross-border payment messaging system, which is designed to be a faster alternative to Swift. One Pay FX does not utilize On-Demand Liquidity, which is powered by XRP.
Santander’s support desk set off a whirlwind of rumors back in March, when it mistakenly stated that it was using XRP.
Santander then retracted the statement and clarified it only uses Ripple’s xCurrent, which does not utilize the digital asset.