Ripple’s New Banking Strategy Could Send XRP Price to $4

The price of XRP, held steady in a favorable trend, seems ready to burst free as Ripple, the financial services firm, reveals its banking cooperation strategy. As detailed in their August 30 whitepaper, they aim to collaborate with smaller banks. If this partnership approach proves effective, it could positively impact both Ripple and its associated currency, XRP.

Ripple’s Banking Plans Could Boost XRP Price

According to a whitepaper published on August 30, Ripple intends to introduce its technology to smaller financial institutions. Here’s their proposed approach:

    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. 

By providing these tools from Ripple, smaller banks will be able to compete more effectively alongside the major players in the industry. In fact, Ripple has started this initiative by collaborating with banks in Southeast Asia and the Middle East.

As a researcher, I find myself observing an optimistic progression in the XRP market, significantly boosted by the positive outcome of the SEC versus Ripple lawsuit. This favorable resolution undeniably strengthens the winds beneath XRP’s potential growth trajectory.

Will SEC Appeal?

Following the August 7 decision in the SEC vs. Ripple lawsuit, Ripple, acting as the defendant, has 60 days (up until October 7) to submit an appeal if they choose. The case will be officially closed if the SEC does not file an appeal by this date.

As a researcher delving into the intricacies of cryptocurrency, I find myself intrigued by the recent court decisions in the SEC vs. Ripple and SEC vs. Kraken lawsuits. These rulings seem to hint at a trend where the courts may not categorize crypto assets as securities. Given this interpretation, it appears that the likelihood of the Securities and Exchange Commission (SEC) choosing to appeal these decisions could be relatively 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

Based on the pattern seen since July, where there have been three consecutive lower highs and lower lows, it appears that the XRP price is within a falling wedge structure. Typically, when the price breaks above the upper trend line of this formation, it can lead to a positive or bullish price movement.

Back then, in late 2019 and mid-2020, an interesting pattern emerged on the XRP price chart. After breaking out from this technical setup, Ripple’s price surged by an astounding 742%, peaking at $1.96. This incredible upward trend could potentially reoccur in 2024, as another bullish wedge formation seems to be developing.

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. 

Ripple’s New Banking Strategy Could Send XRP Price to $4

As a crypto investor, I find it reassuring that large-scale investors, often referred to as ‘whales,’ are amassing XRP tokens, with holdings ranging from 100,000 to 10 million units. These savvy investors had previously accumulated XRP before the significant price surge in 2020 and are demonstrating similar behavior today. This pattern gives me confidence that they foresee a bullish outlook for XRP prices in the near future.

Ripple’s New Banking Strategy Could Send XRP Price to $4

If XRP‘s price falls below the $0.522 resistance level, it might result in a new low and weaken the bullish argument. This could potentially trigger a 26% drop, taking the price down to the lower boundary of the wedge at around $0.382.

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2024-08-31 13:56