Key Takeaways
- SWIFT has recently announced a partnership with Ethereum developer Consensys for testing blockchain-backed payment infrastructure.
- The move has made some crypto traders skeptical about Ripple-backed XRP.
- The price of XRP is rallying, and experts are optimistic.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has recently announced a partnership with Ethereum developer Consensys for testing blockchain-backed payment infrastructure. The move has raised concerns among some of the crypto analysts about the prospects of XRP, as the Ripple-backed token has been promoted for cross-border payments. However, currently, XRP is rallying and its bullish run is supported by positive technical signals, increased institutional activity, and speculations about ETF approvals.
SWIFT Partners With Ethereum Firm
SWIFT has recently announced a partnership with Consensys for testing a blockchain prototype. The news created waves in the cryptoworld and is welcomed by the crypto community. The move is seen as testimony to the increased acceptance of cryptocurrencies. As the partnership involves leading financial superpowers such as Bank of America (NYSE: BAC), JPMorgan Chase (NYSE: JPM), and Citi (NYSE: C), which were hitherto averse to blockchain-powered payments. The analysts also view it as a necessary step for SWIFT as it is trying to keep up with modern times. The crypto expert Pumpius noted that the move shows the fundamental weakness within SWIFT, as it relies on the legacy payment systems and infrastructure on X (formerly Twitter).
SWIFT was established in 1973 by more than 200 leading banks from 15 countries, and it currently serves around 11,000 financial institutions spread across the globe. It serves as a secure network for cross-border financial communications and making payments between financial institutions in different countries. Partnering with Ethereun Firms has made some crypto enthusiasts and traders skeptical about Ripple-backed XRP, as they have been promoting XRP for cross-border transactions. Yet, crypto experts believe that XRP has already shown higher efficiency and speed suitable for real-world applications. Leading financial institutions, such as Santander, SBI Holdings, and PNC Bank, have already adopted Ripple’s technology, and their client base is expanding at a faster pace. The ETH network, on the other hand, is yet to outmatch the Ripple infrastructure in terms of scalability. Besides, as of today, the market sentiment is bullish towards XRP.
Current Market Scenario: XRP Remains Bullish, Backed by Positive Technical Indicators and ETF Anticipations
Technical Analysis
As of today, 3rd October, based on our Technical analysis. XRP is trading at around $3.02, and the price has increased 1.99% in the past 24 hours. Breaking $3 support level is crucial for XRP as it has been a technical barrier and psychological barrier for the Ripple-backed coin whenever it attempts a breakout. The 24-hour trading volume has also seen an increase of 8.21% and is nearing $7.24 billion. The Ripple-backed currency has a market capitalization of XRP price $ 181.29 billion, ranking 3rd in the Layer 1 sector in terms of market cap. The token is trading above its 200-day simple moving average (SMA) of $ 2.60 and 50-day SMA of $ 2.94. The current Fear & Greed Index is 64, suggesting market optimism. Plus, XRP had 16 green days in the last 30 days. The Relative Strength Index (RSI) stands at 51.36, further suggesting a neutral stance bordering bullish momentum. XRP has increased by 462% in the last year alone, and it has outperformed 99% of the top 100 crypto assets in terms of market cap. The overall market sentiment remains bullish. The only red flag is the yearly inflation rate of 5.85%.
| Technical Indicator | Value |
| Fear & Greed Index | 64 (Greed) |
| 14-Day RSI | 51.36 |
| Volatility | 3.41% (Medium) |
| 200-Day SMA | $ 2.60 |
| 50-Day SMA | $ 2.94 |
The Factors Driving the Price of XRP: ETF Anticipations and Increased Institutional Activity
The SEC has recently streamlined the process of ETF approvals, and the regulator has also recently dropped a long-standing legal dispute with Ripple. The ETF approvals are expected this month, and the anticipation is driving the price of XRP. The ETFs provide a regulated channel of exposure for crypto, and are favoured by institutional investors. The REX-Osprey XRP ETF has attracted significant institutional interest and saw record-breaking trading volumes during its debut.
Additionally, Japan’s SBI Holdings has expanded its institutional XRP lending services, driving the price of XRP up. The increased institutional activity, coupled with regional adoptions, shows the long-term growth potential of XRP. The XRP is currently priced above $3, which shows that the token has gained enough investor confidence to break the $3 barrier.
XRP Price Predictions: Will it hit $5?
Amidst the surging prices, the crypto experts are not shying away from bold predictions. The experts predict that the price of the Ripple-backed coin would go up and are not ruling out a possible breakout. The XRP has also shown considerable resilience amidst the recent $1.6 billion crypto liquidations. Upturn prediction is backed by positive technical indicators and renewed institutional interest. If XRP continues to rally, it has the potential to reach $5 or above in the last quarter or early next year.
Despite the positive developments, the changing macroeconomic environment remains a cause of concern. Crypto analysts are also closely watching how SWIFT’s partnership with an Ethereum Firm is affecting the prospects of XRP. Investors are advised to be cautious as the crypto market is highly dynamic and volatile.