XRP reaches monthly high after Ripple opens liquidity tunnel between Japan and Philippines

RIpple XRP
Image by 132369 from Pixabay
  • Ripple’s new partnership introduces on-demand liquidity to the Asian-Pacific region
  • XRP broke out of the descending channel formation

YEREVAN (CoinChapter.com) – XRP, the native money-transfer token of Ripple Labs blockchain company, jumped 12 percent on the news of a fresh partnership in the Asian-Pacific (APAC) region and reached its monthly high of $0.75.

New liquidity tunnel

In detail, Ripple collaborated with SBI Remit Co. Japanese money transfer company to ease the growing number of remittance transactions from Japan to the Philippines.

The Philippines have a large diaspora all over the world, including Japan. Subsequently, there’s a tremendous remittance flow from Japan to the Philippines (almost $2 billion), as migrants send home means to pay for food, rent, utilities, etc. However, as a result of high transaction fees, money transfers are oftentimes too costly.

To solve the issue at hand, and have a slice of the remittance flow, Ripple labs partnered with SBI Remit and Coins.ph (Philippines mobile transfer service) to provide faster and cheaper transaction opportunities between the two countries. The new project is Ripple’s On-Demand Liquidity (ODL) service in Japan.

Previously known as xRapid, the ODL cross-border payment service allows transferring funds from one fiat currency to another, with XRP acting as an intermediary between the two.

The latest partnership comes as a part of a larger expansion into the APAC region. Ripple also acquired 40 percent shares of Tranglo, a Malaysia-based money transfer company back in March 2021.

Also read: XRP fails to capitalize on the recent cryptocurrency market recovery, dip ahead?

Meanwhile, XRP…

… benefited from the partnership greatly. The digital asset gained 12 percent in 24 hours, atop the total intraweek gain of 30 percent. XRP/USD exchange rate stood at 0.71 in the European session Wednesday, after briefly peaking at 0.75 earlier in the day.

The money transfer token broke out of the lengthy descending channel formation it traded in for months.

The bottom trendline was instrumental in providing support and preventing breakdowns. The upper resistance trendline was intertwined with the 20-day exponential moving average (EMA-20; the blue wave) and capped all upward attempts until July 21. The two trendlines enveloped the price action and pulled the value down.

Earlier, on July 20, XRP retested the $0.52 support bar and adopted a confident bullish momentum. The token also sought additional support from the EMA-20 for a few days, before shooting above the 50-day simple moving average (SMA-50; red wave) on July 27.

XRP breaking out of the descending channel. Source: XRPUSD on TradingView.com
XRP breaking out of the descending channel. Source: XRPUSD on TradingView.com

All the bullish price action corrected the movement of the EMA-20, which curved its trajectory to the upside, flashing green light for a possible golden cross. If EMA-20 manages to keep above the SMA-50, XRP could be looking at a bullish phase with further gains.

Also read: XRP breaks above a key resistance level even as SEC replies to Ripple’s letter

Currently, the breakout is somewhat hindered by the 0.71 resistance line, which proved significant in the past. If XRP bulls conquer the resistance, they might push all the way to the $1.00 price line. If not, the currency can still fall back on the $0.63 line or the $0.53 support bar.

It is also noteworthy, that the trading volumes have been lower than usual during the past month, which indicates the desire of traders to hold the asset, rather than exchange it.

Also read: XRP avoids solid bullish fundamentals to drop to one-month low—what’s happening?

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