Ripple has exploded higher as its impressive deals pipeline begins to catch the imagination of prospective buyers.
Ripple’s XRP token is priced at $0.514 as it retraces from losses earlier in the week. It is 6.5% higher over 24 hours, according to coinmarketcap. Ripple specialises in providing cross-border payments solutions for financial institutions and has partnerships with 120 financial institutions around the globe.
XRPUSD price target
Although volumes remain subdued, we are setting a price target of $0.55306, which takes the price back to the level last achieved on 6 November. Here’s why.
Big Ripple deal in Asia
Its latest deal sees Ripple partner with the ASEAN’s (Association of Southeast Asian Nations) region’s fifth-largest bank, Malaya’s CIMB. It has more than 1,000 branches throughout ASEAN countries.
CIMB will be using Ripple’s xCurrent technology which does not use XRP. xCurrent will be used with its existing remittance system, SpeedSend. SpeedSend is now able to connect its services to Ripple and other blockchain network-based payment solutions. The Malaysian inbound remittance markets is worth $120 billion and growing rapidly.
Remember: XRP token is not a share in Ripple
Investors can make the mistake of buying XRP as if they were buying into a share of the capital of the company Ripple, which they are not. xRapid, which uses XRP, is available to companies on RippleNet but most are just testing. Full commercial availability of xRapid was announced at Ripple’s annual Swell event in October.
Other recent partnerships include Santander Bank, PNC Bank in the US, the payments messaging system SWIFT (also seen as a competitor), American Express, to name just a few of the blue chip companies testing or preparing to deploy its technology.
Ripple chief executive Garlinghouse told Bloomberg this week that, Ripple is “solving a cross-border payments problem”. In a dig at bitcoin he said that the value of a digital asset will be “based on its ability to solve problems.”
Mitsubishi UFJ Financial Group (MUFG) is integrating Ripple into a new cross-border transfer product launching in Brazil. MUFG is working with local partner Banco Bradesco.
News today that XRP is one of five crypto assets to be tracked by Amun Crypto ETP, the first ever crypto exchange traded product to list on a Swiss stock exchange. Amun Crypto tracks the top five crypto assets by market cap. The product is issued by Six Group which runs Switzerland’s main stock market.
As if that wasn’t all enough to chew on, there’s more.
Another factor bolstering the favourable position of XRP is its recent overtaking of Ethereum to grab second place in the market cap rankings.
Traders also continue to hold the hope of a Coinbase listing in their collective back pockets. That prospect, if it turned into reality, could see the price realistically challenge for the $0.90-1.00 range.
Coinbase recently added XRP to its custody service.
XRPUSD 2-hour chart Kraken.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane