Here’s why Circle’s CPN could be a threat to XRP price

As the XRP price consolidates, one of its top catalysts is facing substantial threats from Circle Internet Finance. 

Ripple (XRP) was trading at $2.20 on Monday, July 7, within a range it has maintained over the past few days. This price is approximately 22% above its June low. 

One of the most bullish cases for XRP is that Ripple could become a major disruptor to Swift, the messaging network connecting over 11,000 banks. Swift processes more than $150 trillion annually, and Ripple Labs is targeting a share of that market. 

Ripple Labs aims to disrupt this industry through RippleNet, which leverages the XRP Ledger and XRP to streamline global payments. It does so by connecting banks, payment providers, and other financial institutions to offer real-time payment solutions. 

RippleNet achieves this through components like xCurrent, On-Demand Liquidity (ODL), the XRP Ledger, and xVia. xCurrent is software for enabling real-time payments, while ODL uses XRP as a bridge currency to provide liquidity for cross-border transactions. The XRP Ledger serves as the underlying blockchain that records all transactions on the network.

Ripple Labs has a strong opportunity in this space, especially following the resolution of the SEC lawsuit. However, it must now contend with Circle, the creator of the USDC and EURC stablecoins. 

Circle recently launched the Circle Payment Network, a solution that leverages its stablecoins to simplify global payments. Known as CPN, the platform connects financial institutions to facilitate cross-border payments using USDC, EURC, and fiat currencies. 

CPN allows payment providers and banks to settle transactions in seconds, unlike Swift, which processes payments through multiple intermediaries like correspondent banks.

Swift transactions are often slower and more expensive, particularly on weekends when many banks are offline. CPN has already formed partnerships with companies including Nuvei, BVNK, Yellow Card, and Triple A.

Circle’s key advantage over Ripple is the broader reach of its payment network. It also enjoys a stronger reputation among institutions, as it has not been involved in major legal battles.

XRP price technical analysis

The daily chart shows that XRP has advanced in recent days, climbing from last month’s low of $1.9141 to $2.20. It is currently consolidating around the 50-day and 100-day Exponential Moving Averages, while volatility has declined.

XRP has also formed a symmetrical triangle pattern, with its two trendlines nearing convergence, a sign that a bullish breakout may be imminent. The MACD indicator lines have moved above the zero line, and the Relative Strength Index has climbed above 50. 

Therefore, the most likely scenario is a continuation to the upside, potentially retesting the year-to-date high of $3.50.