XRP price skyrockets 17% as the double bottom chart pattern takes shape

The price of XRP rose higher on Wednesday as its parent company Ripple reached an agreement with SBI Remit to support a remittance corridor from Japan to the Philippines.

Positive news increases the price of XRP

The Ripple blockchain native cryptocurrency, also ranked the sixth largest digital asset by market capitalization, hit its one-month high of $ 0.759 after rebounding 17.73% over the course of the day. At a one-month low, it changed hands for just $ 0.514.

XRP continues its uptrend amid a market-wide upturn. Source: TradingView

The boost came from a partnership between Japan’s largest money transfer provider SBI Remit and the Philippines-based mobile payment service Coins.ph. With additional support from SBI’s Digital Asset Exchange platform, the duo aim to leverage Ripples On-Demand Liquidity (ODL) to provide more affordable remittance options to the Filipino diaspora in Japan.

ODL via Ripple’s cross-border payment service xRapid enables parties to send funds using XRP as the bridge currency. In other words, the sender first converts the local fiat currency to XRP and sends it to the recipient via the Ripple blockchain. In return, the recipient converts the XRP tokens back into their local currency after receiving them.

Technology distorted upwards

XRP’s recent jump also activated a classic technical setup known as a raised floor, suggesting that Ripple’s token could experience longer upward momentum in the intermediate sessions.

That’s because double bottoms are bullish reversal chart patterns. They appear when an asset falls, recovers, falls back to the same or a similar level in order to recover. The twice-touched high is known as the neckline which, when broken to the upside, expects prices to be as high as the distance between the neckline and the raised floor support.

XRP forms a double-bottom pattern. Source: TradingView

The maximum height of the double bottom pattern is $ 0.25. Hence, if they break above the neckline (near $ 0.75), XRP traders may have $ 1 as their next upside target.

Support for XRP is also an upward momentum in the broad cryptocurrency market. It started after Tesla CEO Elon Musk announced that his private rocket company SpaceX held Bitcoin (BTC), the world’s leading digital asset by market cap.

Related: Bitcoin Hits $ 40,000 After 6 Week’s Absence, But Activity In The Chain Is “A Little Bearish”

The unveiling came last week during The ₿ Word conference, which was attended by Cathie Wood from Ark Invest and Jack Dorsey from Twitter. Dorsey called Bitcoin a huge part of Twitter’s future, noting that it is the de facto currency of the internet.

Bitcoin’s realized 30-day correlation with XRP was 0.75 at the time of writing, which suggests the likelihood of assets moving at the same time. The price of BTC has increased over 7% in the past 24 hours and was trading over $ 40,400 at the time of writing.

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