Ripple’s US Bank License Filing Boosts XRP Rally Potential
Ripple Labs Inc. (XRP) saw renewed market interest following CEO Brad Garlinghouse’s high-profile announcement on X Tuesday. Garlinghouse confirmed that the company is actively pursuing a national bank charter from the Office of the Comptroller of the Currency (OCC).
If approved, Ripple Labs would become the first U.S. banking entity primarily focused on cryptocurrency under federal and state financial regulators. Garlinghouse emphasized the potential impact, stating the company aims to “create a new (and unique!) benchmark for trust in the stablecoin market,” should the application succeed.
XRP Technical Analysis Suggests Rally Potential Towards $2.65
In the immediate aftermath of the news, XRP/USDT displayed bullish technical signals. The price managed to rebound off the 20-day Exponential Moving Average ($2.19) on Wednesday and subsequently broke above the crucial 50-day Simple Moving Average ($2.23). This suggests the bulls are seeking to seize control of the price action.
Immediate resistance appears to be centered around the $2.34 level, a significant psychological barrier. A reversal below this level could signal renewed bearish pressure, potentially confining the price action between the $2.34 and $2.00 range in the short term.
However, overcoming $2.34 appears pivotal. Success here could unlock significant upside, potentially challenging the overhead resistance located at the $2.65 level. Bears are expected to mount considerable selling pressure to defend this stronger resistance zone. Breaching $2.65 could initiate a new leg of the ascent, potentially targeting the $3.00 price point.
Bullish Pattern Points Towards $2.76 Target
Separate analysis points towards a potential $2.42 recovery attempt followed by a rally towards a $2.76 pattern target. A bullish inverse head-and-shoulders formation is currently forming on the XRP/USDT 4-hour chart.
If the price effectively breaks above the pattern’s neckline in the coming sessions and closes above it, this structure would be confirmed, increasing the potential rally target to $2.76.
Conversely, the bullish scenario could be invalidated if the price fails to sustain momentum above the current neckline and structures below $2.14, potentially triggering a risk of a decline down to $2.07.
*Disclaimer: This article does not constitute investment advice or recommendations. Every financial and trading decision involves inherent risk, and readers are strongly encouraged to conduct their own thorough research before acting on any mentioned information.*
