The XRP price has underperformed quite a bit over the past two years. While XRP is down 90.04% from the all-time high of $3.40 on Jan 6, 2018, Bitcoin (-75.76%) and Ethereum (-74.52%) show considerably smaller losses.
One of the main reasons as this is probably the lawsuit filed against Ripple by the US Securities and Exchange Commission (SEC), which has caused a lot of uncertainty among investors. Additionally, numerous exchanges have either removed XRP or, like Grayscale, dissolved their trust in XRP. an agreement with the SEC or a Ripple Court Victory therefore, it is considered an extremely strong catalyst for the XRP price.
Ripple is expanding ODL adoption
Yet another reason to be bullish is Ripple’s XRP-based On-Demand Liquidity (ODL) technology, which continues to see widespread adoption beyond the US in a interviewNavin Gupta, Ripple’s managing director for South Asia and MENA, said that ODL is available in markets that account for almost 90% of the $6 trillion daily forex market.
Gupta further commented that there is a lot of interest in the XRP-based technology in the Middle East and North Africa (MENA) region:
We have seen a lot of interest from MENA institutions to use On-Demand Liquidity (ODL) to support the remittance services they offer, and we already have local payment service providers like Pyypl using the solution to facilitate remittances between the UAE and other countries around the world.
The executives also revealed that Ripple expects further growth in the region adding; “[w]We have partnerships with several leading banks in the region, including SABB in Saudi Arabia and QNB in Qatar. We are also working with local payment service providers such as Pyypl and LuLu Money, who use Ripple’s crypto solution to facilitate global movements between different currencies.”
As Gupta also noted, RippleNet’s total payment volume has grown by more than $15 billion in the past year, while global ODL volume has increased nine-fold year-over-year. In the United Arab Emirates in particular, Ripple is finding an open stance towards the use of cryptocurrencies for remittances and treasury payments.
More recently, Gupta has observed that traditional financial institutions have become more comfortable with the idea of adopting cryptocurrencies. “While traditional financial institutions have been slower to adopt, MENA is certainly seeing an increase in new services and adoption in the region by both consumers and businesses,” she added.
The XRP price today
At press time, XRP price was trading at $0.3339. This puts the price just above the key support level at $0.3333, where it needs a bounce to avoid falling towards the next support level at $0.3212. On the upside, XRP bulls need to drive the price above $0.3548 to build momentum.
Featured Image by vjkombajn / Pixabay, Chart by TradingView.com
