- Cuallix has recently praised the financial solution provided by Ripple.
- The market is now trading in a newly establish trading range between $0.3185 and $0.3449.
- Support moving forward: $0.32, $0.3185, $0.3028, $0.29, $0.2858.
- Resistance moving forward: $0.3449, $0.3635, $0.3943, $0.40, $0.4178, $0.4280, $0.4542, $0.4617.
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Cuallix, a financial institution with over 25 years in Mexico, the United States and Hong Kong, has been in partnership with Ripple to provide cross-border payments since early 2018. The company was one of the first 3 to use xRapid and XRP in piloting cross-border payments.
XRapid is a liquidity solution for banks that uses XRP as a bridge currency. It helps financial institutions to eliminate delays and lower costs in global payments.
The CFO of Cuallix, Nicolas Palacios, recently spoke at the Swell Conference in San Francisco, where he stated that using Ripple technologies allowed them to move funds in a faster, more efficient and transparent way which can be passed on to their final client. He also stated that he believes that they are the only company in Mexico to use the product so far.
According to Palacios, Mexico has a great need for good financing products and that the Ripple solutions are the “right way” to do it.
Mexico is one of the top 5 remittance destinations in the world, alongside India, China, the Philippines and Pakistan. The Ripple solution allows Mexicans to receive money instantly without having to pay the huge fees associated with remittances.
Cuallix had previously stated that after running the numbers, they found that the xRapid solution is up to 1,000% times more efficient than traditional methods. Cuallix also focuses on providing credit and payment processing to individuals and companies, and were the winners of the Blockchain Innovators Award in 2018.
Let us continue to take a look at price action for XRP/USD over the short term and proceed to highlight any potential areas of support and resistance moving forward.
XRP Price Analysis
XRP is currently exchanging hands at a price around $0.3293, at the time of writing, after losing a small 0.63% over the past 24 hours of trading. The cryptocurrency has seen a further 11% price decline over the past 7 trading days, bringing the total 30-day price decline down to 1.2%.
XRP has now retaken the number 2 position as it presently holds a $13.41 billion market cap value. The 65-month old project has now seen a 28% price fall over the past 90 trading days. The market now trades at a value that is 91% lower than the all-time high price.
Analyzing price action for XRP/USD from the 4-hour perspective above, we can see that since our last Ripple analysis, price action has fallen further below the previous trading range.
XRP/USD dropped below the support at the short-term .5 Fibonacci Retracement level (drawn in green) priced at $0.3635 and continued to fall until further support below was met at the short-term .786 Fibonacci Retracement level (drawn in green) priced at $0.3185.
After reaching this area of support, the market attempted to rebound but met resistance at the short-term .618 Fibonacci Retracement level (drawn in green) priced at $0.3449. XRP/USD was unable to penetrate above this resistance and has now established a trading range between $0.3449 and $0.3185 over the past trading week.
As the market has established a new lower trading range, the trading condition is still deemed to be as neutral.
If price action breaks below the trading range, we can consider the market trend as bearish. For XRP/USD to be considered bullish in the short term, we would need to see price action head back above the trading range.
Where is the Support for XRP Below the Market?
If the sellers begin to drive price action lower, we can expect immediate support below to be located at the short-term .786 Fibonacci Retracement level (drawn in green) priced at $0.3185, the lower boundary of the trading range.
If the bears can cause XRP/USD to break below the trading range, then further support beneath can be expected at the short-term .886 Fibonacci Retracement level (drawn in green) priced at $0.3028.
If the selling pressure continues to cause XRP/USD to break below the $0.30 handle, we can then expect more support towards the downside at the previous long-term downside 1.414 Fibonacci Extension level (drawn in pink) priced at $0.2858.
Where will the Market Meet Resistance Towards the Upside?
Alternatively, if the buyers begin to push price action higher, we can expect immediate resistance towards the upside to be located at the upper boundary of the trading range, at the short-term .618 Fibonacci Retracement level (drawn in green) priced at $0.3449.
If the bulls can continue higher and push the market above the currently established trading range, further resistance above can be located at the short-term .5 FIbonacci Retracement level (drawn in green) priced at $0.3635. If XRP/USD continues above this resistance level, the market will have entered the previous trading range described in our previous article.
Further resistance higher will then be expected at the bearish .382 and .5 Fibonacci Retracement levels (drawn in red), priced at $0.3943 and $0.4280 respectively.
If the bullish pressure continues to drive price action even higher, more resistance above is located at the short-term 1.618 Fibonacci Extension level (drawn in purple) priced at $0.4542. This is closely followed by the bearish .618 FIbonacci Retracement level (drawn in red) priced at $0.4617.
After securing more than 200 customers worldwide, Ripple has continued to ramp up the number of partnerships that are using its financial solutions. As more and more of their partners begin to speak out about the benefits of the platform, such as Cuallix, the rate of adoption for the financial solution should continue to increase.