XRP shows signs of potential significant upside momentum, with technical analysis pointing towards a move to $2.65 amid Ripple Labs’ ongoing application for a US banking license.
Technical indicators reveal a bullish recovery, with XRP rebounding from the 20-day Exponential Moving Average (EMA) near $2.19 and surging above its 50-day Simple Moving Average (SMA) around $2.23.
Further reinforcing the positive outlook, an inverse head-and-shoulders formation observed on the 4-hour chart suggests targets of $2.42 and $2.76. Market participants are also eyeing resistance levels at $2.34 and $2.65, viewing a decisive breach as potentially unlocking a path toward $3.00. Support remains a key watch point at $2.07.
The fundamental catalyst for this optimism centers on Ripple Labs’ pursuit of licensing to operate as a money transmitter and lender in the United States. Securing approvals could significantly enhance XRP’s utility as a bridge currency within banking systems and reduce persistent regulatory uncertainty, factors known to bolster asset valuation and adoption.
Investors are advised to closely monitor the progress of Ripple’s regulatory applications and subsequent market reactions for timely insights.