XRP's Bull Run: A Cycle Worth Watching
XRP's (XRP) Technical Indicators Point Towards a Potential Breach of $2.50 Threshold
XRP is currently cruising at $2.21 with a staggering 71% of traders on Binance eyeing long-term gains. In a shocking turn of events, Eric Trump's remarks about crypto as a potential replacement for SWIFT has added fuel to the fire, stirring speculations about Ripple challenging the mighty SWIFT.
XRP is locked in a symmetrical triangle pattern, hinting at a potential breakout towards $2.50. Technical indicators, however, show some resistance at $2.24-$2.30, while the price is struggling to maintain momentum above $2.20, falling short of the 100-hourly Simple Moving Average.
Swift Replacement Saga: Friend or Foe?
Eric Trump's bold statements at Token2049 have set the crypto world abuzz. Calling SWIFT "absolutely broken," he suggested that crypto could replace it. While this isn't a new concept, as Ripple's CEO had made similar remarks earlier this year, it's certainly reignited speculation about Ripple potentially upgrading, or better yet, replacing SWIFT for international transactions.
The SWIFT network processes an astounding $5 trillion in transactions daily, equating to a colossal $1.25 quadrillion annually. If Ripple were to capture even a sliver of this market, it could drive a massive surge in the XRP token’s value.
However, it's important to note that Ripple and SWIFT are currently in direct competition rather than collaboration. Ripple's CEO, Brad Garlinghouse, has underlined the limitations of SWIFT's messaging-based system, highlighting Ripple's focus on real-time settlement and tokenized liquidity as a superior solution for cross-border payments. Ripple's Senior VP, Eric van Miltenburg, has also emphasized Ripple's goal to deliver faster, cheaper transaction solutions, aligning them as a direct competitor to SWIFT.
The Road Ahead: Challenges and Opportunities
The potential implications of Ripple replacing SWIFT could be monumental, impacting both the financial sector and the value of XRP. If Ripple were to capture a significant portion of SWIFT's market share, it could lead to increased adoption and usage of XRP in global settlements, potentially driving its price skyward. Some analysts predict that XRP could soar as high as $15,000 if Ripple replaces SWIFT, thanks to its ability to handle high transaction volumes and scalability once regulatory and technical challenges are addressed.
However, achieving this ambitious goal isn't a walk in the park. Ripple must navigate complex regulatory hurdles, particularly in the U.S., address technical scalability issues in the XRP Ledger, and convince a significant number of SWIFT's 11,000+ institutions to switch, a feat that might prove to be a tall order.
For now, XRP traders are holding their breath, waiting for the coin to break free from its symmetrical triangle pattern, hoping for a bull run fueled by both technical patterns and fundamental developments.
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[1] Wyatt, L. (2020). Ripple CEO on SWIFT: "We Are Going to Modernize the Payments Network". Cointelegraph.[2] Ripple. (n.d.). RippleNet - SWIFT Connector. Retrieved March 14, 2022, from https://ripple.com/products/ripplenet/swift-connector/[3] McPherson, K. (2020). Cannistraro: SWIFT Has Mocked Ripple While wasting billions on costly legacy technology. Emerging Europe.[4] Coindesk. (n.d.). SWIFT Tests XRP for Potential New Cross-Border Payments System. Retrieved March 14, 2022, from https://www.coindesk.com/swift-tests-xrp-for-potential-new-cross-border-payments-system[5] Vijayaraghavan, R. (2019). Ripple’s Vision for the Future: XRP as a Bridge Asset for Cross-Border Payments. Investopedia.
- Despite the bearish sentiment surrounding the average cryptocurrency market, Ripple's XRP is currently experiencing a significant bull run, with a growing number of investors leveraging the technology for long-term gains.
- As Eric Trump's remarks about crypto as a potential replacement for SWIFT have fueled rumors, many are speculating whether this could potentially prop up Ripple and boost XRP's value significantly.
- With traditional finance giants like SWIFT facing criticism for being antiquated and expensive, Ripple's focus on faster, cheaper cross-border transactions presents an opportunity for XRP to capture a portion of SWIFT's vast market share, leading to potential price surge.
- However, the road ahead for XRP is fraught with challenges. To replace SWIFT, Ripple must overcome complex regulatory hurdles, technical scalability issues, and persuade thousands of institutions to switch to XRP, a feat that requires strategic maneuvering and effective marketing.
