The XRP price has moved sideways over the past few days as crypto consolidation gained steam. The token was trading at $2.055 on Monday morning, a few points below this week’s high of $2.2370. This article explores whether Ripple can realistically outperform SWIFT and what the potential price of XRP might be if it does.
Ripple Is Seen as a Top SWIFT Network
A key theme in the crypto market is Ripple’s potential to disrupt the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. SWIFT is a messaging network used by thousands of banks to send money internationally. It is estimated to handle more than $5 trillion each day and $1.25 quadrillion a year.
Ripple Labs, fresh from its victory over the SEC, is eyeing a disruption of SWIFT. In a recent statement, Brad Garlinghouse noted that Ripple’s technology was superior to SWIFT, which was established over 50 years ago. RippleNet’s transactions cost only a few cents and take just seconds to complete.
Ripple’s main challenge has been the case with the SEC, which has made many companies, especially in the United States, avoid it. With the court case done, more firms will likely be comfortable using it.
Another benefit is that Ripple Labs has the financial resources it needs to grow its business and ink partnerships.
The challenge, however, is that SWIFT is widely used in the payment industry and has partnerships with more than 11,000 financial institutions in 200 countries. Ripple, on the other hand, has fewer than 400 partners like Santander, Bank of America, Kotak Mahindra, and Axis Bank. As such, getting to 11,000 partners will take time.
Therefore, while Ripple can capture market share, it will take years for it to surpass SWIFT as the leading player in payments.
XRP Price Technical Analysis
The daily chart shows that the XRP token entered a bear market this year, as it plummeted by double digits from its highest level in November 2021.
On the positive side, the token has stayed above the 200-day moving average, avoiding the formation of a death cross. Furthermore, the XRP price has formed a falling wedge pattern, characterized by two converging trendlines that are falling.
The coin has also formed a bullish flag pattern. Therefore, the token will rise to $3, and the right and left shoulders will point. A move above the year-to-date high of $3.4 will signal more gains, potentially reaching the psychological points of $5 or $10 if it gains market share against SWIFT. However, a drop below the support at $1.6100 would invalidate the bullish outlook.
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