Ripple’s XRP made a massive comeback on Tuesday after CNBC reported that Ripple could launch “a commercial version of its payment platform xRapid “in the next month or so. On the news, XRP saw over an 18% gain which brought it back to the lower band of the daily Ichimoku cloud. Let’s take a closer look at the fundamentals and the technicals behind the surge.
Ripple, the company developed xRapid for commercial use and it is backed by XRP tokens. The new platform addresses the issue of minimizing liquidity costs and making cross-border payment transactions faster. It claims to significantly reduce the capital requirements for liquidity. While Ripple the company sometimes claims they have nothing to with the XRP token movements, they did partner with crypto exchanges such as the US-based Bittrex, Mexican-based Bitso, and the Philippines-based Coins.Ph. By doing so they are looking to build a “healthy” ecosystem of digital asset exchanges” which will enable xRapid to move between XRP, USD, Mexican Peso, and the Philippine Piso. These are all awesome fundamental news for XRP.
What’s different this time? The pair is way closer to the daily Ichimoku cloud. If the bullish sentiment is strong enough to break above the cloud, we could see a potential medium-term bullish reversal which could bring XRP back to key Fibonacci retracement levels at $0.42 and $0.52.
Now let’s take a look at the technicals. I talked about a potential Double Bottom chart pattern forming on XRP/USD chart last week and it now looks like the pattern is on its way to reach the neckline at 0.3666. Last time XRP tested this level was a month ago, on August 17th when the crypto saw a similar jump like the one we saw on Tuesday. However, the gains were capped at 0.36 and the pair gradually dropped back to the key support level of 0.2551.
