XRP Stalled This Week Despite Ripple CEO Brad Garlinghouse's Outing of His Plans to Disrupt SWIFT

XRP has stalled this week even after Ripple CEO Brad Garlinghouse shared his views on how Ripple will compete with SWIFT.

Ripple (XRP) price stalled this week even after CEO Brad Garlinghouse shared his optimistic views on how Ripple will compete with SWIFT.

In an interview on Tuesday with Fox Business host Maria Bartiromo, Garlinghouse said he was confident that Ripple would become a viable rival to SWIFT over time.

“SWIFT has been around for 50-plus years. It’s a cooperative, a collective, and it’s time for it to be disrupted,” Garlinghouse stated.

SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is a messaging service used by banks and other financial institutions globally to process cross-border payments. The collective handles over $150 trillion in transactions yearly.

But despite its vast scale, SWIFT is often slow and time-consuming. While transaction speeds have improved in recent years, it is still common for SWIFT transfers to take days to complete.

In contrast, Ripple’s technology boasts transaction times of less than five minutes and minimal fees, typically just a few cents per transaction.

The company uses a technology known as on-demand liquidity, which involves converting a local currency to XRP, transferring it to another country, and converting it into the local currency. Transactions can also be made without using XRP, which is known for its volatility.

“[It can be done] without needing a stablecoin, although we think Ripple USD will be a key part of the ecosystem,” Garlinghouse explained.

Still, Ripple has a long way to go to catch up with SWIFT, which has partnerships with over 11,000 banks. According to Garlinghouse, the recent conclusion of the Ripple vs SEC case will help Ripple onboard more American banks that handle trillions in payments annually.

He noted that Ripple signed up more U.S. banks and payment companies in the six weeks after Donald Trump’s election than in the previous six months combined.

However, Ripple’s business in the U.S. largely stagnated after the SEC launched its lawsuit against the company in 2020. As a result, most of its partnering institutions were from abroad, especially in Japan.

“We couldn't go and sign up U.S. banks and payment companies while the SEC was trying to shut us down,” said Garlinghouse.

The case, which unfolded over three years, saw the SEC accuse Ripple of selling unregistered securities to raise $1.3 billion. The agency's actions effectively barred U.S. institutions from working with Ripple.

But in July, Judge Analisa Torres ruled in favor of Ripple, finding that the company's sales of XRP to institutional investors did not constitute an offering of securities.

The decision sparked a rally in the XRP token, which is currently trading at $2.40.

XRP price technical analysis

On the daily chart, the XRP token has formed a head and shoulders pattern, which could risk a drop to $1. However, the weekly chart shows that the coin has formed a break-and-retest pattern by moving to $1.9666, its highest swing in 2021.

It has also moved above the 50-week and 100-week moving averages, and it is forming a bullish pennant chart pattern, which is characterized by a tall vertical line and a symmetrical triangle.

Therefore, more gains will be confirmed above the resistance at $3, which represents the shoulders of the head and shoulders pattern. A move above that level will raise the odds of the coin rising to $5.

This move will be possible if the lower support at $1.966 holds. A drop below that level will invalidate the bullish view.