The Ripple (XRP/USD) price darted higher after Ripple Labs announced a major deployment of On-Demand Liquidity (ODL) service in Japan. The coin rose by more than 15%, bringing its total market capitalisation to more than $27 billion. Other cryptocurrencies like Cardano and Ether also gained.
Ripple Labs expands in Japan
Ripple is one of the oldest blockchain projects in the world. Unlike other popular projects like Bitcoin and Ethereum, its goal is to make cross-border payments easier. It achieves this through XRP and its on-demand liquidity service. It has also partnered with several financial providers like Santander, Azimo, Nium, and TransferGo.
In a press release, the company said that it was launching the first ODL offering in Japan by partnering with SBI Remit. SBI is the biggest money transfer company in Japan. The goal of this partnership will be to help facilitate transactions between Japan and Philippines. In a statement, Nobuo Ando of SBI said:
“The launch of ODL in Japan is just the start, and we look forward to continuing to push into the next frontier of financial innovation, beyond real-time payments in just the Philippines, but to other parts of the region as well.”
The new development is seen as a positive thing for Ripple price because it will lead to more demand for XRP. It is also a validation that the payment system works. Most notably, it comes at a time when Ripple Labs is battling a major lawsuit brought by the Securities and Exchange Commission (SEC). The agency alleges that the company misled investors when it held its token sale. It also failed to register the capital raising with the SEC.
Further, the partnership comes a few months after Ripple Labs acquired a 40% stake in Tranglo, a leading fintech firm in Asia. It also hired a managing director for the Southeast Asia region.
XRP price prediction
The daily chart shows that the XRP price formed a double-bottom pattern at $0.5130 this month. In price action, this pattern is usually a bullish sign. It managed to move above the neckline of this pattern at $0.700. Further, the coin is approaching the 61.8% Fibonacci retracement level. It is also being supported by the 50-day and 100-day moving averages. Therefore, the coin will likely keep rising as bulls target the next key resistance at $1.
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