Money transfer giant MoneyGram’s partnership has been a major leap for Ripple as a payments company. The same applies to MoneyGram for being a traditional payments company using blockchain solutions for money transfers. Discussion of the partnership was one of the highlights of the recent Swell conference.
That wasn’t all however, as during the conference, potential xRapid flows between the U.S. and Mexico surged by more than 100%.
Using publicly available data, HMX, who goes by the screen name @hmatejx on Twitter, set up charts to observe potential xRapid transfers between known corridors. These charts showed a bump in ODL [On-Demand Liquidity] from the usual $1 million to $2.2 million on November 7, 2019, between Bitstamp [the U.S. corridor for xRapid txns] and Bitso [Mexican corridor for xRapid txns].
As seen in the chart above, there was a total of 8 million XRP transferred between Bitstmap and Bitso. The same destination has been active since August and has transferred an average of $1 million every day since November 2019.
Ripple’s ODL is a trump card for people who are transacting across borders as it removes pre-funding, which is a common approach for cross-border payments in traditional payment methods.
MoneyGram had announced that 10% of its transactions take place between the U.S. and Mexican corridor via Ripple’s payments solution, On-Demand Liquidity (ODL), that leverages the cryptocurrency, XRP. CEO of MoneyGram, Alex Holmes, stated,
“What has amazed me the most is the amount of pressure that legacy players face.The fundamental challenge of moving money around the world is that there isn’t a lot of coordination between financial institutions and there should be more solutions to connect all of these pieces. More and more companies are looking to make the economy move like it should.”
Although there is no concrete proof that the destination tags belong to MoneyGram, there is a probability that it might be so. A quick visualization of the ODL was shared by HMX.
“This is how the market making supporting ODL looks like. What destination tags 25370527 & 47175592 transfer from USD → MXN, destination tags 36427656, 97376688, and 80025555 transfer back from MXN → USD.”
Ripple (XRP) Price Remains At Risk Of More Losses
- Ripple price is trading in a bearish zone below the $0.2840 resistance against the US dollar.
- The price is struggling to hold the key support area near the $0.2700 level.
- Yesterday’s major bearish trend line is active with resistance near $0.2800 on the hourly chart of the XRP/USD pair (data source from Kraken).
- Ethereum is trading above $180 range support and bitcoin is down more than 3.5%.
Ripple price is facing an uphill task against the US Dollar and bitcoin. XRP price is likely to continue lower as long as it is trading below $0.2820 and $0.2840.
Ripple Price Analysis
In the past few hours, there was an increase in selling on ripple below the $0.2840 resistance area against the US Dollar. XRP/USD mostly followed a bearish path below $0.2800 and the 100 hourly simple moving average.
Moreover, the price moved below the last low and traded to a new weekly low near $0.2682. At the moment, the price is correcting higher above $0.2720. Moreover, there was a break above the 23.6% Fib retracement level of the recent decline from the $0.2852 high to $0.2682 low.
However, there are many resistances for ripple on the upside near the $0.2765 and $0.2780 levels. Besides, the 50% Fib retracement level of the recent decline from the $0.2852 high to $0.2682 low is near the $0.2765 level.
More importantly, yesterday’s major bearish trend line is active with resistance near $0.2800 on the hourly chart of the XRP/USD pair. The 100 hourly SMA is also positioned near the trend line and $0.2800 to act as a barrier for the bulls.
Therefore, a clear break above the trend line, $0.2800, and the 100 hourly SMA could start a decent increase. The next key resistance is near the $0.2840 level, above which there are chances of more upsides towards the $0.3000 resistance area.
On the downside, an initial support is near the $0.2700 level. If there is another bearish break below the $0.2700 support, the price could even decline below the $0.2682 low. The next key supports on the downside are near the $0.2650 and $0.2640 levels.
Looking at the chart, ripple price is clearly trading in a bearish zone below the $0.2800 and $0.2840 resistance levels. A convincing close above $0.2840 is needed for the price to move into a bullish zone. If not, there is a risk of more losses below $0.2700.
Hourly MACD – The MACD for XRP/USD is about to move into the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently declining and is below the 50 level.
Major Support Levels – $0.2700, $0.2680 and $0.2650.
Major Resistance Levels – $0.2765, $0.2800 and $0.2840.
Ripple price analysis: XRP/USD dancing with the 38.2% Fibo, $0.28 is still unconquered
- Ripple launches another assault on $0.28 short term resistance zone.
- Ripple price likely to settle with a narrow range between $0.28 and $0.27.
Ripple is forcing a recovery amid a generally bullish environment across the crypto space. Unlike Monday, the entire market is in the green. Leading the recovery on the day is NEO, EOS and Bitcoin Gold having corrected higher 2%, 1.35% and 1.23% in that order.
Following the return movement to the key support at $0.27, Ripple bulls have been on a mission to break the short term resistance at $0.28. However, limiting the gains is the 38.2% Fibo taken between the last swing high of $0.3153 to a swing low of $0.25 and the descending trendline.
The price is also below the 50 Simple Moving Average on the 4-hour chart currently at $0.2886 and the 100 SMA at $0.2920. According to the Relative Strength Index (RSI), Ripple will settle in the narrow range and trade sideways in the coming sessions. The range spans from $0.270 support to the resistance at $0.28.
Peru’s Interbank to utilize Ripple’s On-Demand Liquidity for cross-border payments
- Previously, the bank used Ripple’s payment messaging system xCurrent.
- Ripple states that 24 of its 300+ clients have signed up to use On-Demand Liquidity.
Banco Internacional del Peru, also known as Interbank, recently announced that it will be utilizing Ripple’s XRP-powered payment product called On-Demand Liquidity (ODL). Previously, the bank used Ripple’s payment messaging system xCurrent. At the Ripple’s Swell conference in Singapore, Interbank’s blockchain specialist Joisie Mantilla said:In Peru, we started thinking about cryptocurrencies when they first started appearing in the US. The bank has done a great job trying to attract talent that is really focused on innovation. And we have an innovation lab inside the bank.
So we work as a team that is allowed to fail and try different things, and we started working with xCurrent in that way. And now, after a year of working with xCurrent, we have decided to move forward this year and use the cryptocurrency to do our transactions.
Ripple’s On-Demand Liquidity was formerly known as xRapid. On-Demand Liquidity utilizes Ripple’s cryptocurrency XRP to act as a link between two fiat currencies. Ripple stated that 24 of its 300+ clients have signed up to use ODL since its launch in October 2018. According to Mantilla, the bank is bound to use new technologies. She said that many financial institutions in Latin America are increasingly using advanced innovations in their infrastructure for cross-border payments.
The need that we have found is both our products of either corporate payments or just remittances are outdated. We’re not being competitive in the market anymore. There are so many fintechs, especially coming from Brazil or from the US itself that are targeting Peru as one of their next steps to flourish.
As per the Corporate Financial Institute (CFI), Interbank is one of the largest banks in Peru, with $41.3 billion in total assets. The company reported $2.9 billion in total revenue in 2017.