XRP experienced a pause this week, even as Ripple’s CEO, Brad Garlinghouse, expressed his thoughts on how Ripple plans to take on SWIFT.
On Tuesday, Ripple (XRP) was priced at $2.40, maintaining a stable position over the preceding days. This value marks approximately a 28% increase from its lowest point this month.
In a recent dialogue with Fox Business host Maria Bartiromo, Garlinghouse voiced his belief that Ripple could emerge as a strong competitor to SWIFT in due course.
He pointed out that SWIFT has been operational for more than five decades, indicating it’s time for its technology to be disrupted. With handling over $150 trillion each year, SWIFT transactions can often be slow and cumbersome. Although there have been improvements in speed, it is still quite common for SWIFT transfers to take several days before completion.
The conclusion of the Ripple vs. SEC lawsuit is expected to facilitate Ripple in acquiring more U.S. banks, which collectively manage trillions in transactions each year. Garlinghouse mentioned that Ripple onboarded more American banks and payment providers in the six weeks following Donald Trump’s election compared to the entirety of the previous six months.
Ripple’s progress in the U.S. market largely stagnated following the SEC’s lawsuit against the firm in 2020, leading to most partnerships being established overseas, particularly in Japan.
Ripple’s technology is perceived as a more efficient substitute for SWIFT due to its rapid transaction speeds and low costs. A standard transaction is completed in under five minutes, costing only a few cents.
Employing a mechanism known as on-demand liquidity, Ripple enables the conversion of a local currency to XRP, which is then transferred internationally and reconverted to the local currency. Transactions may also be conducted without utilizing XRP, which is typically subject to volatility.
Ripple aims for its stablecoin, the Ripple USD (RLUSD), to become a central component of its ecosystem. Nevertheless, Ripple still has significant ground to cover to match SWIFT, which has affiliations with over 11,000 banks.
XRP Price Technical Analysis
The XRP token has created a head and shoulders pattern on the daily chart, suggesting a potential decline to $1. However, the weekly chart indicates that the token has established a break-and-retest pattern, reaching $1.9666, its highest point in 2021.
Additionally, XRP has formed a bullish pennant pattern, characterized by a pronounced vertical line and a symmetrical triangle, and has surpassed both the 50-week and 100-week moving averages.
For further gains to be confirmed, a rise above the resistance level at $3, which constitutes the shoulders of the head and shoulders pattern, is essential. A breakthrough at this mark may heighten the likelihood of the coin climbing to $5, representing a potential increase of 105% from the current price. Conversely, a fall below the support level at $1.966 would invalidate the optimistic outlook.