Here’s why XRP volume has picked up on payment brokers

Here’s why XRP volume has picked up on payment brokers – Explica .co

5 May 2021

in XRP

Reading Time: 4 mins read

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XRP has taken bullish momentum on the 1 hour chart with a 4.7% gain. Higher time frames look equally bullish with the weekly and monthly chart posting a 7.8% and 154% rally, respectively.

XRP retreats on the daily chart. Source: XRPUSDT Tradingview

XRP’s price performance has rebounded since early 2021 when the token underwent a severe correction. The US Securities and Exchange Commission (SEC) lawsuit against Ripple Labs for the alleged illegal sale of a security hit the market.

Many exchange platforms were expecting the worst and removed the token from the list. Ripple’s other deals were also negatively affected, such as its cooperation with MoneyGram and established payment brokers with the On-Demand Liquidity payment solution. These corridors are used for foreign workers to send remittances to their home countries and other token-based use cases.

Consequently, the volumes of liquidity on these platforms plummeted, but they are showing signs of recovery. Monitor Liquidity Index Bot has registered a spike in this metric in 3 of the 4 payment corridors, except the one between the then token and PHP (Philippine Peso).

The volume on this payment platform has remained at relatively high levels with 1,032,894 traded in the last 24 hours. Not too far from its all-time high (ATH) at 3,435,748 if the metric is placed alongside the other runners.

Liquidity Index for https://t.co/raMbsEkdJD XRP / PHP (84-day moving trend)
Day’s progress: 79%
So far: 1,032,894
All-time high: 3,435,748
Data: https://t.co/cF3K6P1fg9 pic.twitter.com/M5kTk6EHIO

– Liquidity Index Bot (@LiquidityB) May 4, 2021

Australian payment brokers established with the BTC Markets exchange for the token and AUD (Australian dollar) have been hit the hardest. In the last 24 hours, the volume of liquidity remains negative with 346,326. Far from its ATH at 6,891,996. As the graph below shows, volume has reversed its downward trend since April 29, 2021.

Liquidity Index for BTC Markets XRP / AUD (84-day moving trend)
Day’s progress: 92%
Today so far: -346,326
All-time high: 6,891,996
Data: https://t.co/zlBcWd0sYI pic.twitter.com/BbLzD821Ur

– Liquidity Index Bot (@LiquidityB) May 4, 2021

The broker established with the Bitso exchange for the token and the MXN (Mexican Peso) recorded low levels of negative volume. This metric has also been on the rise with 2,556,145 traded in the last 24 hours, but it is not yet close to its all-time high and the levels recorded during 2020.

Liquidity Index for Bitso XRP / MXN (84-day moving trend)
Day’s progress: 92%
So far: 2,556,145
All-time high: 17,507,342
Data: https://t.co/v07j0Xh3s1 pic.twitter.com/9WYK3xxaGQ

– Liquidity Index Bot (@LiquidityB) May 4, 2021

Bitstamp shows the highest volume levels with 5,189,350 traded in the last day. The liquidity in this exchange for the pair between the token and the EUR (Euro) has exceeded the levels it registered during November and December 2020, when the SEC’s lawsuit was filed, but it has a long way to go before reaching its ATH at 14,343,363.

Liquidity Index for Bitstamp XRP / EUR (84-day moving trend)
Day’s progress: 92%
So far: 5,189,350
All-time high: 14,343,363
Data: https://t.co/JSWxJdUsLO pic.twitter.com/3Ok6eTJJzy

– Liquidity Index Bot (@LiquidityB) May 4, 2021

Sentiment around XRP and the SEC’s lawsuit has changed

The recovery on these platforms coincides with a growing bullish sentiment for the potential result on the legal front. Phemex and other exchanges have already listed the token again. More could follow in the next few days.

Meanwhile, Ripple is preparing. The payment solutions company hired former US Treasurer Rosie Rio to join its Board of Directors and former PayNearMe CFO Kristina Campbell to fill the same position at Ripple. Brad Garlinghouse, CEO of the payment solutions company, said:

Rosie’s experience in the public and private sectors provides invaluable insight to Ripple, especially during this time as the industry works to define the future of cryptocurrencies. (…) We are extremely fortunate to have them on the team as we continue our rapid international growth and uphold regulatory clarity in the US.