XRP has stalled this week even after Ripple CEO Brad Garlinghouse shared his views on how Ripple will compete with SWIFT.
Ripple (XRP) was trading at $2.40 on Tuesday, holding steady over the past few days. The price is about 28% above its lowest level this month.
In an interview with Fox Business host Maria Bartiromo, Garlinghouse said he was confident that Ripple would become a viable rival to SWIFT over time.
He argued that SWIFT has been around for over 50 years and that its technology is due for disruption. SWIFT, which handles over $150 trillion annually, is often slow and time-consuming. While transaction speeds have improved, it is still common for SWIFT transfers to take days to complete.
According to Garlinghouse, the recent conclusion of the Ripple vs SEC case will help Ripple onboard more American banks that handle trillions in payments annually. He noted that Ripple signed up more U.S. banks and payment companies in the six weeks after Donald Trump’s election than in the previous six months combined.
Ripple’s business in the U.S. largely stagnated after the SEC launched its lawsuit against the company in 2020. As a result, most of its partnering institutions were from abroad, especially in Japan.
Ripple’s technology is seen as a better alternative to SWIFT because of its superior speeds and low costs. A typical transaction takes less than five minutes to complete and costs just cents.
Ripple uses a technology known as on-demand liquidity, which involves converting a local currency to XRP, transferring it to another country, and converting it into the local currency. Transactions can also be made without using XRP, which is known for its volatility.
Ripple hopes that the Ripple USD (RLUSD), its stablecoin, will become a key part of the ecosystem. Still, Ripple has a long way to go to catch up with SWIFT, which has partnerships with over 11,000 banks.
XRP price technical analysis
The XRP token has formed a head and shoulders pattern on the daily chart, risking a drop to $1. However, the weekly chart shows that the coin has formed a break-and-retest pattern by moving to $1.9666, its highest swing in 2021.
XRP has formed a bullish pennant chart pattern, characterized by a tall vertical line and a symmetrical triangle. It has moved above the 50-week and 100-week moving averages.
Therefore, more gains will be confirmed above the resistance at $3, which represents the shoulders of the head and shoulders pattern. A move above that level will raise the odds of the coin rising to $5, up by 105% from the current level. However, a drop below the support at $1.966 will invalidate the bullish view.
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