- Ripple partnered with Tranglo, a Malaysia-based payment company, and acquired a 40% stake.
- This move enables Tranglo to leverage XRP through Ripple’s existing on-demand liquidity footprint.
- XRP price forms an inverted head and shoulders pattern that predicts a 70% surge to $ 1.
Ripple recently announced a collaboration with Malaysia-based cross-border payment company Tranglo. This strategic move could drive the XRP price up as it is directly tied to the partnership.
Ripple expands the reach of on-demand liquidity (ODL)
Ripple announced Tuesday that it is acquiring a 40% stake in Tranglo, a Malaysia-based cross-border payments center. The main intent behind this partnership is to meet Ripple’s growing demand in this region.
Tranglo’s already huge network will help Ripple by using existing ODL corridors that leverage XRP. The announcement states:
As a pioneer in cross-border payment services, Tranglo will play a critical role in supporting existing corridors such as the Philippines and introducing new ODL corridors into its current network. As Ripple expands its ODL presence in the region, RippleNet customers using ODL can also leverage Ripple’s credit line to free up working capital and scale cross-border payments in more markets than ever before.
Although Ripple is filing a securities fraud lawsuit against the U.S. Securities & Exchange Commission (SEC), it is making headway in other countries. The investment in Tranglo will help connect the fragmented payments landscape in Southeast Asia and increase adoption of XRP.
In addition, on the recently published blog, Ripple stated that RippleNet transactions were successful ten times in 2020, with Southeast Asia playing an important role. Therefore, the current investment will also strengthen the presence in this region.
Regardless of the outcome of the ongoing lawsuit, Ripple and XRP have a lot to gain outside of the US.
XRP price eyes higher high
XRP price has been going through an inverted head and shoulders pattern for more than three months. This technical formation consists of two characteristic valleys of almost the same height that form the shoulders. The valley in the middle is much deeper than the others and forms the head.
The peaks between these steep price moves cross a horizontal level of resistance known as a cutout. In the case of XRP, a move above $ 0.63 means a breakout of the setup. This pattern predicts a 72% upswing, which is determined by measuring the distance between the lowest point of the head and the cutout and adding it to the breakout point.
That goal sets the XRP price at $ 1.08.
Adding more credibility to this upswing is the buy signal that the SuperTrend indicator recently released. A crucial closing price above $ 0.63 will play a crucial role in determining the future of the XRP price. Hence, investors need to pay close attention to this.
XRP / USDT 12-hour chart
If the transfer token is declined around the USD 0.63 level, it can cause problems for the XRP price. Regardless, a break in the demand barrier at $ 0.42 will invalidate the bullish outlook and fuel a bearish one.
In this case, XRP could fall 20% towards the support level at $ 0.32.