Ripple (XRP) has seen a large jump over the past 24 hours, breaking above the $1 barrier vs TetherUSD. After a small retracement around 6.30am (GMT+1), it managed to hold onto gains, and is currently trading at $1.02. When we compare this performance to both Bitcoin and Ethereum, it’s definitely worthy of further notes. Over 24 hours, both Bitcoin and Ethereum are down 2-2.5% respectively. 

Fundamental drivers

The main driver behind the short-term rally was news that GME Remittance joined the RippleNet platform. GME Remittance are South Korea’s largest non-bank payment provider, remitting funds on behlaf of clients. For those not familiar, RippleNet offers connections to hundreds of financial institutions around the world via a single API. 

It already has some big names using the system, including Bank of America, American Express and Santander. Yet the connection into Asia is seen as a big win for the company (and the coin). It taps into Japan and the Philippines, both of which could be strong markets going forward. Further, GME Remittance have partnerships with Siam Commercial Bank in Thailand, so the likely crossover and adoption of RippleNet in this regard is clear.

It’s hard to exactly compute the value of this new relationship or market, but clearly the Ripple price took it as a large net benefit.

Aside from this news, XRP is benefitting from weaker US inflation figures that came out yesterday afternoon. Core CPI inflation came in at 0.3%, missing expectations of 0.4%. The market (and the USD) was looking for a larger beat to this. As a result, the USD weakened in the aftermath, which pushed XRP/USD higher.

Lower inflation could also see the US Fed sit on their hands for longer and hold off from tapering asset purchases and raising interest rates. This will provide longer-term benefit to the Ripple price. As Ripple is a non-interest bearing asset, the lower US interest rates the more supportive it is for investors to hold Ripple. The opportunity cost is low in this regard.

Technical drivers

A potential double bottom was formed in June and July, at levels of $0.65 and $0.51. The strong support here has enabled a bounce, breaking through resistance on the topside. The 50% Fibonacci extension level is the next level seen on the upside at $1.105. 

In the very short-run, the RSI is above 70, which flags overbought territory. However, when fundamental news combines with technical breaks, the Ripple price could remain overbought for longer before taking a retracement.

It has also broken above the 14 and 50 DMA, both of which now act as good support on any retracement seen. 

Given the bullish daily candle, I think the XRP price could target the 61.8% Fibonacci extension level at $1.245 in coming days before seeing a sell-off. 

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