The Ripple (XRP/USD) price is attempting to recover today after tumbling more than 5% yesterday to close below the key support at $0.23. The plunge in price came despite the partnership between India’s biggest bank, HDFC Bank Limited, with RippleNet.
Fundamental analysis: HDFC joins
Navin Gupta, Ripple’s Managing Director for South Asia and MENA region, confirmed at the Swell MENA conference that India’s biggest bank, HDFC Bank Limited has partnered up with RippleNet.
HDFC Bank (largest private sector bank in India) joins RippleNet. Announced at Swell MENA August 12 2020. @MoonLamboio @sentosumosaba @stedas @DiepSanh @HamEggsnSam @BankXRP @LeoHadjiloizou pic.twitter.com/80MUdz7RJO
— Louis Marriott (@LouisMarriott1) September 18, 2020
HDFC Bank is the largest bank in the country by market cap as well as the largest private sector lender in terms of assets. As of June 2019, the bank had more than 100,000 employees and provides a wide array of products and services to more than 43 million consumers.
The rumours about the partnership between Ripple and HDFC Bank were first mentioned at the Swell conference last year.
Still, no clear framework was provided in which the bank would join Ripple. The crypto community speculated that the partnership could involve only B2B services due to the crypto-aggressive regulatory approach in India at the time.
Nevertheless, on August 12 at the end of the Swell MENA conference, Navin Gupta made the announcement that the partnership. It is unlikely that the bank will start using the XRP token immediately, but will probably test or utilize Ripple’s technology for global payments.
“I’m pleased to announce that HDFC Bank, the largest private sector bank in India has joined RippleNet. They will be a key receiving partner into India and our team is incredibly excited to work with them,” Gupta explained.
The news about the partnership might come as a surprise to many in the crypto community given the political circumstances in India.
Even though the Supreme Court lifted the ban on trading in digital currencies in March 2020, rumours have emerged that the Indian government is considering restoring the ban.
Technical analysis: XRP/USD breaks key support
The technical picture is not looking good for XRP buyers after yesterday’s tumble in price also pushed the XRP below $0.23. This is a major horizontal support line for the digital coin, which prevented the price action from falling lower earlier this month.
Ripple price daily chart (TradingView)
Hence, a daily close below $0.23 will now transform this support into the resistance line. Any attempt to move higher from the XRP buyers will likely result in the struggle. The next target on the downside is $0.2150, where the 100-DMA and the horizontal support line intersect.
Ripple has confirmed that India’s largest bank HDFC Bank Limited has joined its RippleNet platform. In the meantime, XRP/USD closed below the key support at $0.23 yesterday.