Fintech company Ripple has taken a major step toward fortifying its presence in the rapidly expanding Japanese blockchain sector. The company has forged a strategic partnership with HashKey DX, a consulting branch of Tokyo-based HashKey Group, making a significant entrance in the arena of blockchain enterprise with its hallmark XRP Ledger (XRPL). News of the alliance immediately resonated within the market, nudging XRP’s valuation up by 1.9% though it eventually slipped to 1.1% at the final tally.
This collaboration, designed to launch XRPL-powered enterprise solutions in Japan, capitalizes on the impressive track record of HashKey Group in mainland China. The group’s blockchain-based solutions, aimed at managing supply chain finance, currently serve an extensive network of over 4,000 businesses which include 23 banks and around 4,300 suppliers. The total transaction volume processed via these solutions clocks in at a strong $7 billion with almost $3 billion credited to finance transactions.
The venture into the Japanese market will be a coordinated endeavor, featuring involvement from both Ripple and SBI Ripple Asia, a joint initiative between Ripple and SBI Holdings. XRPL will act as the underpinning technological platform, bringing its expertise in tokenizing and trading both crypto-based and tangible world assets.
An executive of HashKey DX, Andy Dan, detailed how XRPL’s robust framework met their requirements: “The XRPL was the perfect blockchain infrastructure for expanding our tried and tested supply chain finance solution. The proven enterprise track record, unbeatable performance metrics, including swift settlement speeds, economic viability and scalability, make it an ideal choice.” He also shared his optimism about the potential to instigate sweeping transformation and introducing innovative, path-breaking solutions in the Japanese business scenario.
Ripple’s Vice President of Strategic Initiatives, Emi Yoshikawa, reciprocated the excitement and echoed the partnership’s commitment to the advancement of blockchain tech, saying: “We are excited to join hands with HashKey DX and SBI Ripple Asia to bring XRP Ledger-powered solutions to Japan as this exemplifies our shared commitment to delivering real value to businesses.”
The initial surge in XRP’s price post-announcement demonstrated the market’s bullish response to Ripple’s shrewd maneuver. However, broader price movement patterns suggest a more complex reality. Over recent weeks, XRP has weathered turbulence, notably breaking down from a symmetrical triangle pattern on the price chart. This pattern, which started taking form in September 2021, generally signals a period of consolidation with the eventual breakout indicating the dominant market force.
At present, the breakdown implies a victory for the sellers, with the triangle acting as a resistance zone. XRP still has to navigate choppy waters as it is trading below several key exponential moving averages which will need to be overcome to restore the bullish momentum.
The Relative Strength Index, which stands at 49, is poised around a neutral point, suggesting that neither party has seized control yet. This state of play highlights the current market ambiguity, as it remains on hold for a potential catalyst which could send the price into a new trajectory.
If the bulls regain control and propel the price over the triangle’s resistance, the shift could trigger the 0.236 Fibonacci retracment level of $0.68410, initiating a shift in market sentiment and potentially stronger gains for XRP.