Ripple Labs has applied for a national banking license in the USA, acting as a catalyst for XRP's price growth. CEO Brad Garlinghouse made an announcement regarding this on social media platform X.
Ripple's Banking License Application
Brad Garlinghouse stated in his post that the company "is applying for a national bank charter" from the Office of the Comptroller of the Currency (OCC).
Garlinghouse added that if the license is approved, the firm would be under "federal and state oversight," creating a "new (and unique!) benchmark for trust in the stablecoin market."
XRP Price Prediction
XRP bounced off the 20-day exponential moving average ($2.19) on Wednesday and broke above the 50-day simple moving average ($2.23), suggesting that bulls are trying to take control.
The XRP/USDT pair could rise to the $2.34 level, which is expected to pose strong resistance. If the price turns down from $2.34 and breaks below the 20-day EMA, it signals that bears are selling on rallies, likely keeping the pair within the $2.34 to $2 range for a while.
Market Conditions Analysis
If the price breaks through the $2.34 level, it opens the way for a rally to the overhead resistance of $2.65. Sellers are expected to defend the $2.65 level as a break above could initiate a new up move toward $3.
The pair has formed a bullish inverse head-and-shoulders pattern, which will complete on a break and close above the neckline. If that occurs, the pair could rally to $2.42 and then to the pattern target of $2.76.
This positive outlook will be invalidated in the near term if the price turns down from the neckline and breaks below the $2.14 support, increasing the risk of a drop to $2.07.
Obtaining a banking license for Ripple Labs is a significant event that could enhance trust in XRP and impact its market price. However, potential fluctuations in the short term highlight the risks associated with cryptocurrency investments.
