The value of XRP jumped in early-morning amid news that Ripple, the cryptocurrency’s parent company, was making inroads into the Chinese market through a pair of local partners. Although gains have since dissipated, the third-largest cryptocurrency by market capitalization continues to trade well above a key psychological threshold.
The XRP price reached a high of $0.5349 on Tuesday, according to Bitfinex. At the time of writing, XRP was trading hands at $0.5293 for a gain of 1%. On CoinMarketCap, XRP is reported to have reached a high of $0.5255 late Monday before falling through the overnight session.
XRP is likely to face resistance near $0.5500, which represents the high from last week. Over that period, trade volumes have dropped by more than half to $626 million, according to CoinMarketCap.
At the height of Tuesday’s rally, XRP had a total market capitalization of around $21.1 billion, putting it just below Ethereum, which is currently valued around $21.5 billion.
The biggest markets for XRP trades are ZB.com, ZBG and Bitbank; combined, they processed nearly 40% of transactions on Tuesday.
XRP Value Drivers
Ripple’s global expansion has achieved a major milestone after Chinese authorities granted American Express, one of the company’s biggest partners, entry to the domestic payment market. China has reportedly given the greenlight to AmEx, an international payment platform, to begin servicing the nation’s e-commerce market. Ripple partnered with AmEx last year in a new initiative aimed to streamline payment processing for small- and medium-sized enterprises.
Interestingly, AmEx’s entry into the Chinese market must go through a gatekeeper called LianLian Group, which settles transactions through the government-controlled UnionPay. LianLian Group is already partnered with Ripple and is using the company’s technology to process domestic e-commerce transactions domestically.
The so-called banker’s cryptocurrency has been the recipient of positive news flow in recent months pointing to wider mainstream adoption of Ripple’s technology. As Hacked reported three days ago, Japan’s largest bank, MUFG, is collaborating with Brazil’s Banco Bradesco to leverage Ripple technology for cross-border payments between the two countries.
Speculation concerning XRP’s possible listing on Coinbase has also made headlines amid efforts by Ripple’s lawyers to move a securities lawsuit to federal courts. Records obtained from the Northern District of California confirm that the San Francisco-base company has filed an application to move its securities lawsuit from state to federal level, which would allow Ripple’s lawyers to prove definitively that XRP is not a security.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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