XRP, the cryptocurrency associated with XRP Ledger, bounced over 4% on Wednesday, July 3, to reach a trading price of $2.26. While this buying pressure was kick-started by a broader market recovery, the remittance token gained additional momentum when Ripple filed for a U.S. banking license. Will the approval boost XRP’s utility narrative and surge its price past $3?
XRP Gains 4% as Ripple Files for U.S. Banking License
In the last two weeks, the XRP price bounced from the $1.9 floor to its current trading value of $2.25, registering an 18% gain. The recovery gained additional momentum as the global payment company Ripple filed for a national banking license from the U.S. Office of the Comptroller of the Currency (OCC), according to a report by the Wall Street Journal.
In a parallel setup, Standard Custody & Trust, a Ripple subsidiary, has also applied for a Fed Master account. If approved, it will enable the firm to hold RLUSD reserves directly with the Fed, allowing for off-hours issuance and redemption of the stablecoin and enhancing the efficiency and trust of its operations.
While the efforts center on Ripple’s stablecoin RLUSD, the move could have a positive spillover effect for XRP.
XRP Price Reversal Set for Major Support Test
With a +4% intraday jump, the XRP price teased a bullish breakout from the multi-month resistance trendline on July 2nd. However, the price was rejected with a long wick in display, accentuating the intact overhead supply.
Historically, a reversal from this resistance trendline triggered a correction trend, resulting in a 28-48% loss in value. Thus, if the coin price breaks below the 200-day exponential moving average at $2.1, the sellers could drive a downtrend of over 15% to hit midline support at $1.78.
As shown in the chart below, the midline acts as a strong pivot level for reversal or breakout in XRP. Holding above this support would indicate that the buyers have not thrown in the towel yet and could rebound to challenge the overhead trendline.
A bullish breakout from the channel resistance will signal a change in market dynamics and drive sustained recovery.
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