Ripple (XRP) has turned bullish as the number of banks leveraging its decentralized network for cross border payments continues to rise. Reports that Bank of America has filed a patent for a settlement system citing Ripple ledger is one of the catalysts fuelling XRP price action right now.
Ripple Price Catalysts
The patent describes a system that utilizes a distributed ledger technology to facilitate interbank communication. With the proposed system, BAC seeks to enable real-time settlements through a decentralized ledger.
The filing of the patent is of great importance as it comes at a time when lawmakers in the US have raised concerns that cryptocurrencies pose a danger to national security. However, most of them seem to agree that Ripple is a necessary tool for enabling cross border payments.
The stance has gone a long way in strengthening Ripple sentiments in the market, consequently fuelling price spike. Ripple adoption involving banks is a development that has continued to prop XRP sentiments in the market.
For instance, the crypto received a boost after Sentbe of South Korea and MoneyGram announced a partnership to leverage the Ripple ledger. In June, Thailand’s largest bank tweeted plans to launch an XRP system.
While issues of centralization have cropped up with the involvement of banks, XRP’s popularity has continued to inch higher. Some market participants are of the opinion that it could be a matter of time before XRP becomes more valuable than Bitcoin.
XRP Price Analysis
XRP price has in recent trading sessions taken out the $0.32 level comfortably, consequently starting an upward move against the dollar. A new intraday high of $0.3310 all but underscores the bullish momentum, with support now seen at the $0.305 level.
With bulls consistently winning against the bears, there is a higher chance that Ripple will continue to edge higher on pullbacks, as has been the case for the better part of the year. The fact that the broader cryptocurrency sector has turned bullish after a wild 2018 is another development likely to continue supporting XRP price action.
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