Ripple has announced a major partnership with Tokyo-based HashKey DX, a consulting firm of the HashKey Group, to deploy XRP Ledger (XRPL)-based enterprise solutions in Japan’s growing blockchain sector. The announcement led to an immediate increase of 1, 9% in the price of XRP, although this gain was slightly reduced; According to the latest data, XRP is 1.1% higher since the news broke.
The Ripple and HashKey partnership: details
The collaboration builds on the substantial success HashKey Group has achieved in mainland China. Hash keyBlockchain-based solutions for supply chain finance have registered more than 4,000 companies, including 23 banks and 4,300 suppliers. Total transaction volume through these solutions exceeded $7 billion, with nearly $3 billion in financing transactions.
In Japan, these blockchain solutions will be adapted and deployed through a partnership involving Ripple and SBI Ripple Asia, a joint venture between SBI Holdings and Ripple. XRPL will be the fundamental technology platform. This blockchain specializes in tokenizing and exchanging crypto-native and real-world assets.
Andy Dan, representative of HashKey DX, highlighted XRPL’s efficiency and suitability for their needs, stating: “XRPL was the ideal blockchain infrastructure for us to build our proven supply chain finance solution. With its proven business track record and unparalleled performance metrics, including fast settlement speeds, low costs and scalability, we are confident in our ability to drive significant transformation and introduce innovative, cutting-edge solutions to companies in Japan.”
Emi Yoshikawa, vice president of strategic initiatives at Ripple, expressed this enthusiasm for the partnership: “We are excited to join forces with HashKey DX and SBI Ripple Asia to present. XRP Ledgerpowered solutions for Japan. This collaboration exemplifies our shared commitment to advancing blockchain technology and delivering tangible value to businesses.”
XRP Price Analysis
The initial increase in the price of XRP following the announcement reflects the market’s optimistic reception to Ripple’s strategic moves. However, the broader context of price action reveals more complexity.
In recent weeks, XRP has experienced volatility, notably breaking out of a symmetrical triangle pattern on the weekly chart that began forming in September 2021. This pattern typically indicates a period of consolidation, with the eventual breakout direction suggesting prevailing market strength .
Currently, the breakdown suggests that sellers have gained the upper hand, with the triangle now acting as a resistance zone. XRP faces several hurdles ahead as it is currently trading below several critical exponential moving averages (EMAs) – 20-, 50-, 100-, and 200-week EMAs, all nested in the old triangle pattern. This setup presents significant resistance levels that need to be overcome for bullish momentum to resume.
The Relative Strength Index (RSI), currently at 49, hovers near the neutral mark of 50, indicating that neither bulls nor bears have definitive control. This neutral stance underlines the market’s current uncertainty, waiting for a catalyst that could drive the next significant price movement.
If bulls regain control and push the price above triangle resistance, the 0.236 Fibonacci retracement level at $0.68410 could initiate a shift in sentiment and potentially more robust gains for XRP.
Featured image created with DALL·E, chart from TradingView.com
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