Lack of XRP Pump on the Back of MoneyGram Partnership News is Not Bearish: Analyst
- MoneyGram to leverage XRP for cross border money transfers
- XRP only saw an 8% increase in price while MoneyGram shares rose 140%
- Yesterday, one of the world’s largest money transfer companies, MoneyGram announced its partnership with Ripple that will enable the company to utilize Ripple’s xRapid product. By using this product, MoneyGram will be leveraging XRP in foreign exchange settlement as part of the company's cross border payment process.
With an initial term of two years, through his partnership, Ripple has become a key partner of MoneyGram for cross border settlement using digital assets. As part of this partnership, Ripple made an initial investment of $30 million in MoneyGram equity.
Ripple has basically purchased the newly issued common stock from Moneygram at $4.10 per share, that bears a significant premium to its current market price.
In order to meet its settlement obligations, MoneyGram relies on traditional foreign exchange markets that require an advance purchase of most currencies. But by partnering with Ripple, they get to improve “operating efficiencies and increase earnings and free cash flow.”
— Brad Garlinghouse (@bgarlinghouse) June 17, 2019
Trade The Charts, Not The News
This also marked one of the most prominent companies making use of XRP, which the crypto community has been long awaiting. In the past, companies had steered clear of the cryptocurrency due to lack of clarity on its legal nature.
News like this should have given XRP a massive boost in price, however, no such thing happened. From $0.425 yesterday, XRP jumped to about $0.46 level only, seeing a rise of 8 percent.
At the time of writing, XRP/USD has been trading at $0.435 with 24 hours gains of 2.46 percent. Meanwhile, it is managing the daily trading volume of $436 million which is the second highest volume recorded by any cryptocurrency after Bitcoin’s $1.2 billion, as per Messari’s real 10 volume.
This lack of greens, crypto trader and investor Credible Crypto says, doesn’t mean it is bearish because he explains XRP has been expecting further consolidation. Per the chart shared by him, we can still see more pain before it surges.
So far so good. Lots were expecting a massive pump here on the moneygram news and seem to think the fact we didn't get it is bearish. Rather, we have been expecting further consolidation for some time now. Trade the charts, not the news. $XRP pic.twitter.com/XKkZUGp4Vb
— Credible Crypto (@CredibleCrypto) June 18, 2019
While XRP is up by about 8 percent only, after the news of partnership broke out MoneyGram’s shares skyrocketed 140 percent after hours.
However, XRP has good things yet to come as analysts are bullish on XRP. We reported how XRP has one of the best charts against USD and earlier this month, Credible Crypto has shared that he is “very bullish on XRP” but it is possible we can go lower first.
In another of his analysis, he had shared the possibility of a $28 price target for the third largest cryptocurrency.