In a recent update, Ripple Labs, the company behind the XRP cryptocurrency, has applied for a United States banking license. This development has stirred up the crypto market, causing a ripple effect that could potentially propel XRP’s value to a staggering $2.65.
Brad Garlinghouse, Ripple Labs CEO, revealed in a statement that the company is seeking a “national bank charter” from the Office of the Comptroller of the Currency (OCC). He further explained that if the application is granted, the company will be under state and federal supervision, setting a fresh and unique standard of trust in the stablecoin arena.
This news has sparked speculation about how XRP could benefit and possibly break its current overhead resistance. To understand this better, let’s delve into the charts for a more detailed analysis.
The price of XRP showed a positive response, bouncing off the 20-day exponential moving average ($2.19) on Wednesday and surpassing the 50-day simple moving average ($2.23). This suggests a bullish momentum building up amongst investors.
The XRPUSDT pair could climb to the $2.34 mark, which is expected to be a significant hurdle. If the price drops from $2.34 and breaks down the 20-day EMA, it indicates that bears are selling on rallies, potentially trapping the pair within the $2.34 to $2 range for some time.
However, if the price breaks the $2.34 barrier, it could trigger a rally to the overhead resistance of $2.65. This level is likely to be strongly defended by sellers because a break above could initiate a new upward trend toward $3.
A bullish inverse head-and-shoulders pattern is forming, which will be completed once it breaks and closes above the neckline. In this scenario, the pair could rally to $2.42 and eventually to the pattern target of $2.76.
This optimistic view will be dismissed in the short term if the price drops from the neckline and breaks below the $2.14 support, increasing the chances of a fall to $2.07.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision comes with risks, and readers are urged to conduct their own research before making a decision.
