- As the aftermath of the coronavirus pandemic begins to kick in, the growing need for remittances service becomes more glaring.
- These rising possibilities cast a potential bullish outlook for XRP price in the near term.
- Technical analysis also strengthens the case of an imminent rally for the remittance token.
The breakout of the Covid-19 pandemic has led to a spike in the need for remittance services within the last few months. It appears this development may add to the fundamental factors that will cause XRP price to skyrocket.
XRP’s utility expands while the network’s development activity increases
Contrary to previous expectations in the remittance industry, there has been a significant increase in cross-border transactions. This turn of events presents many strong fundamentals building the case of a potential boom for XRP price.
MoneyGram’s CEO Alex Holmes affirmed that cross-border settlements experienced 11 consecutive months of astronomical growth. A survey carried out by the firm showed that remittances had grown by 70% since the beginning of the year, while 60% of the respondents said to have used digital methods to send money abroad.
Holmes pointed to the 18-month partnership with Ripple as a catalyst for the success MoneyGram has seen, making transactions significantly faster by leveraging the XRP Ledger technology.
“So for us, having access to liquidity, fast transaction, and throughput is really what I think can be transformative for our industry and business in particular in the coming decade, and Ripple is doing a lot of unique things with blockchain to help drive that.” He stated.
Moreover, the active development of XRP’s protocol could be another factor that influences the cryptocurrency’s price in the near future. Ripple’s CTO, David Schwartz, recently announced the completion of a critical aspect of the XRP Ledger (XRPL) to enhance the network’s throughput.
A further price increase in the horizon
After a long period of sideways movement between $0.18 and $0.20, XRP price finally made a tremendous 217% spike before settling at $0.60, where it is currently holding up. A decent buy pressure may spark a rally towards $0.88 before the ultimate push to $1.00.
XRP is currently undervalued when taking into consideration its previous all-time high, pointing to great upside potential.
XRP/USD 4hr chart
Although the cross-border remittances token seems poised for more gains, the bears might gain control momentarily. The Tom Demark (TD) Sequential indicator presents a sell signal on the 4-hour chart that may cause prices to dip to $0.52.
A break of this support level may see XRP price plunge to $0.33 before a recovery.
Share
