XRP price consolidation in a bullish pattern is edging closer to a breakout as Ripple, the payments company, outlines its banking strategy. The August 30 whitepaper outlines the project’s plans to partner with small banks. If this strategy is successful, it could reflect well on the company Ripple and its native token, XRP.
Ripple’s Banking Plans Could Boost XRP Price
The August 30 whitepaper shows Ripple is looking to bring its technology to small banks. Here’s how Ripple plans to do it:
- Faster & efficient payments by using Ripple’s real-time gross settlement system (RTGS) and blockchain technology.
- Removing intermediaries and reducing the cost and fees for businesses.
- Custom-tailored solutions that cater to the needs of small banks using Ripple’s xRapid and xCurrent products.
- Leveraging XRP via On-Demand Liquidity (ODL) to facilitate real-time cross-border payments.
All of these facilities from Ripple will help the small banks fight with the industry giants on equal footing. To some extent, the payments company has already kickstarted this project by partnering with banks in South East Asian and Middle Eastern countries.
This bullish development, coupled with the favorable conclusion of the US Securities and Exchange Commission (SEC) vs. Ripple lawsuit, adds a tailwind for the XRP price to ascend higher.
Will SEC Appeal?
After the conclusion of the SEC vs. Ripple lawsuit on August 7, the regulator or the defendant, in this case, Ripple, has 60 days to file an appeal. This lawsuit will be closed if the SEC does not file an appeal by October 7.
Expert attorney Bill Morgan notes that the recent ruling in the SEC vs. Ripple and SEC vs. Kraken lawsuits suggest the courts are unlikely to consider crypto assets as securities. Morgan uses the rulings as the basis to suggest that the probability that the SEC will file for an appeal is low.
He said:
“The SEC should be careful going forward to maintain this distinction. To the extent it tries to argue that the individual tokens that form the basis of transactions on Kraken are investment contracts, or are themselves securities, its argument cannot proceed”…— bill morgan (@Belisarius2020) August 29, 2024
XRP Price Analysis: Bulls Likely to Step on Throttle Soon
The three lower highs and lower lows formed since July, suggest that XRP price is inside a falling wedge setup. A breakout above the upper trend line often results in a bullish move to the upside.
Interestingly, this setup was formed on XRP price in late 2019 and mid-2020. A breakout from this technical formation was followed by a 742% rally in Ripple price, which set up a local top at $1.96. This move was nothing short of impressive and could be repeated in 2024 as another bullish wedge formation appears.
Despite the conclusion of the SEC vs. Ripple lawsuit in favor of XRP and Ripple, the remittance token failed to rally. However, the recent banking strategy stands to improve the odds of a rally. Therefore, if history repeats, XRP price could rally nearly 600% and tag the $4 psychological level, a new all-time high.
Adding credence to this bullish outlook for XRP price is the whales holding between 100K to 10M XRP tokens’ accumulation. These investors accumulated XRP just before the massive rally in 2020 and are following a similar trend today.
On the other hand, if XRP price breaches the $0.522 support level, it will create a lower low and invalidate the bullish thesis. Such a development could cause the XRP price to crash 26% to the lower limit of the wedge at $0.382.
Frequently Asked Questions (FAQs)
If successful, Ripple’s banking plans could reflect positively on the company and its native token, XRP, potentially leading to a price breakout and a rally of nearly 600% to a new all-time high of $4.
Ripple’s new banking strategy involves partnering with small banks to offer faster and more efficient payments, remove intermediaries, and provide custom-tailored solutions using its xRapid and xCurrent products.
The SEC vs. Ripple lawsuit concluded on August 7, with a favorable ruling for Ripple. The SEC has 60 days to file an appeal, but experts believe the probability of an appeal is low based on recent court rulings.
Akash Girimath
Akash Girimath is an engineer at core, but is interested in the chaos of the financial markets. Akash is senior report and analyst who also trades cryptos on a regular basis and maintains a small crypto fund for friends and family.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/ripples-new-banking-strategy-could-send-xrp-price-to-4/
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