Positive news surrounding Ripple in the last couple of days haven’t stopped the price of its native token (XRP) from hitting a new 2-year low as Ripple follows Bitcoin (BTC) and the rest of the cryptocurrency market lower.
In the past couple of days, Ripple has received endorsements from three established money transfer and remittance companies. David Lighton, co-founder and CEO of SendFriend, praised Ripple’s payment network with a special mention of the On-Demand Liquidity (ODL), previously known as xRapid.
The ODL provides financial institutions with cheap, reliable, 24/7, and near-instant transactions through XRP. Accordingly, the ODL has helped SendFriend cut 75% of the transaction costs.
Similarly, the UK-based digital remittance company TransferGo disclosed plans to start using ODL as the company recognized a “scalable opportunity to have one integration for multiple partners,” said TransferGo’s Co-founder and CEO Daumantas Dvilinskas.
Their previous partnership with Ripple is already paying dividends.
“After launching our Ripple corridor to India, we were able to pay out remittances in minutes,”
Furthermore, Alex Holmes, the CEO of MoneyGram, has also spoken about their new partnership with Ripple.
“One of the most exciting things about it is that we can actually facilitate the growth of this industry by utilizing our liquidity and our needs, really trying to help grow that business in lockstep with Ripple,”
It is important to note that Ripple purchased a $50 million stake in MoneyGram last month.
Ripple has hit a fresh 2-year low against the USD as the entire cryptocurrency market takes a step lower. As seen in the chart below, the price action is currently testing the 127.2% Fibonacci retracement at $0.1850.
A clean break of this level will pave the way for a test of the confluence of support near the $0.1500 mark, which consists of 161.8% Fibonacci extension and the horizontal support at $0.1480 that has played an extremely important role in the past.
On the upside, the horizontal resistance line (the blue line) at $0.2130 is the first level of major resistance for the XRP bulls. In case of a more substantial recovery, watch out for a test of the 100-DMA, which currently trades at $0.2603. For this to happen, a successful daily close above $0.2150 is needed to lay the groundwork for a more meaningful recovery.