XRP price skyrockets by 17% as double bottom chart pattern takes shape
XRP’s price swung higher on Wednesday as its parent company, Ripple, entered an agreement with SBI Remit to back a remittance corridor from Japan to the Philippines.
Positive news boosts XRP’s price
The Ripple blockchain’s native cryptocurrency, also ranked as the sixth-largest digital asset by market capitalization, reached its one-month high of $0.759 after rallying 17.73% intraday. At a monthly low, it was changing hands for as little as $0.514.
The bullish boost came over a partnership between Japan’s largest money transfer provider, SBI Remit, and Philippines-based mobile payments service Coins.ph. With additional assistance from SBI’s digital asset exchange platform, the duo aims to use Ripple’s On-Demand Liquidity (ODL) to offer more affordable remittance options for the Filipino diaspora in Japan.
ODL via Ripple’s xRapid cross-border payment service enables parties to send funds using XRP as a bridge currency. In other words, the sender first converts the local fiat currency to XRP and sends it to the receiver via the Ripple blockchain. In turn, the receiver, upon receiving the XRP tokens, converts them back to their local currency.
Technicals skewed to upside
XRP’s latest jump also activated a classic technical setup known as the double bottom, suggesting that Ripple’s token might undergo an extended bullish momentum in the interim sessions.
That is because double bottoms are bullish reversal chart patterns. They appear when an asset drops, rebounds, drops again to the same or similar level to rebound back. The twice-touched high is called a neckline, which, if broken to the upside, expects to send the prices as high as the distance between the neckline and the double-bottom support.
The maximum double bottom pattern height comes to be $0.25. Therefore, breaking above the neckline (near $0.75) could have XRP traders eye $1 as their next upside target.
Providing support to XRP is also an upside momentum in the broad cryptocurrency market. It began after Tesla CEO Elon Musk revealed that his private rocket company, SpaceX, holds Bitcoin (BTC), the world’s leading digital asset by market capitalization.
Related: Bitcoin hits $40K after a 6-week absence, but on-chain activity is ‘somewhat bearish’
The disclosure came during “The ₿ Word” conference last week, also attended by Ark Invest’s Cathie Wood and Twitter’s Jack Dorsey. Dorsey called Bitcoin a big part of Twitter’s future, noting that it is the de facto currency of the internet.
Bitcoin’s 30-day realized correlation with XRP was 0.75 at the time of writing, indicating the assets’ likelihood of moving in tandem. BTC’s price is up over 7% in the past 24 hours, trading over $40,400 at the time of writing.
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