Will XRP price rebound after Ripple’s partnership with NYSE-listed DXC?

XRP price jumped by over 4.6% at last check on January 21 as investors bought the recent dip after Ripple Labs scored a major partnership with DXC, an NYSE-listed company valued at over $2.6 billion.

Ripple partners with DXC Technology, an NYSE- listed company 

Ripple (XRP) token rose to $1.97, up slightly from this week’s low of $1.8523. This rebound mirrored the performance of the broader crypto market, with Bitcoin rising slightly to $89,000.

In a statement, Ripple Labs said that it had partnered with DXC Technology, a company that provides software and services to thousands of companies globally.

The partnership will enable banks to seamlessly adopt digital asset custody and payment capabilities at enterprise scale. It will enable financial institutions and fintechs to access digital asset technology seamlessly.

It will enable programmable payments and tokenization, custody, and transfer of digital assets, allowing institutions to deliver regulated digital assets uses cases without disrupting mission-critical core banking systems.

The solution will leverage DXY’s Hogan core banking platform that powers more than 300 million deposit accounts and over $5 trillion in deposits. In a statement, Joanie Xie, the Managing Director at Ripple, said:

The announcement came on the same day that Ripple’s Brad Garlinghouse participated in a panel discussion on tokenization at the World Economic Forum event in Davos. He noted that assets worth trillions of dollars will be brought on-chain using quality blockchains like XRP Ledger and Solana.

Ripple has already become a major player in the tokenization industry through Ripple USD, its stablecoin that has over $1.3 billion assets and XRP Ledger, which has accumulated over $400 million in assets.

Still, there is a risk that the XRP price could resume the downward trend. For one, the rebound that happened today could be a dead-cat bounce, a situation where an asset in a freefall rebounds briefly and then resumes the downtrend. Also, spot XRP ETFs suffered the largest outflow on Tuesday, shedding over $53 million in assets.

XRP price technical analysis

The 12-hour timeframe chart shows that the XRP price has retreated from the year-to-date high of $2.4162.

It has moved below the 50-day and 100-day Exponential Moving Averages and the Supertrend indicator. The coin also moved below the Major S&R Pivot Point of the Murrey Math Lines tool.

Therefore, the most likely scenario is where the token continues falling, potentially to the key support level at $1.7660, its lowest level on December 19. This price aligns with the Strong, Pivot, and Reverse levels of the Murrey Math Lines tool. A move below that level will point to more downside to the Ultimate Support at $1.5625.