Controversy continues to surround Ripple’s XRP token, and the company’s incentivizing of partners to start using its cross-border payment solution has flooded the crypto’s market supply. However, despite all this uncertainty surrounding XRP, one analyst thinks that the cryptocurrency is bound for a huge upswing.
Ripple Paid Moneygram to Use Its Cross-Border Remittance Service
Over the past week, Ripple has made headlines regarding a number of events directly linked to its native token, XRP. For instance, on February 26, Moneygram reported that payments from Ripple in the last two quarters of 2019 totaled $11.3 million. Asheesh Birla, a spokesperson from the distributed ledger startup, indicated that the two companies are developing new infrastructure. According to Asheesh, the payments were being used in funding the effort and work of market development.
Some prominent figures in the cryptocurrency industry have insinuated that these cash injections might be for Ripple to use Moneygram’s cross-border remittance services. Moneygram may have confirmed this through its filing, indicating that the payments were for the increasing liquidity of XRP in the markets. The filing indicates that Ripple compensated Moneygram for developing liquidity and bringing it to forex markets through the ODL platform and for providing reliable forex trading.
Ripple is a company that depends on selling XRP to be profitable, and therefore it will continue selling the token, adding to the over $1,220 million worth of XRP the company has sold since 2016.
XRP Ready for an Upswing
Analyst Dave The Wave recently indicated that there is a possibility that XRP is forming an inverse head-and-shoulders trend on its one-day chart. He says this technical formation is seen as the most consistent trend reversal pattern.
Currently, XRP seems to be creating a right shoulder of a bull run, which is an indication that a pullback to the neckline is imminent. Therefore, a bullish impulse will enable XRP to close at around $0.33, which is above the neckline and could trigger an upswing of around 47%.
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