Ripple (XRP) Surges as Company Pursues Banking License
Ripple’s XRP token experienced a surge in value on Thursday, breaking through a key resistance level to trade at $2.29. This 2.5% increase reflects a broader positive sentiment within the cryptocurrency market.
Increased Market Activity
The renewed interest in XRP follows a recovery from Wednesday’s levels, which had been capped below the $2.22 resistance. Data indicates a significant jump in open interest (OI), now at $4.47 billion. Trading volume has also seen a substantial increase, climbing 93% to $7.31 billion.
Ripple Seeks National Banking Charter in the U.S.
Ripple CEO Brad Garlinghouse announced that the blockchain payments company has applied for a national banking charter from the U.S. Office of the Comptroller of the Currency (OCC).
If approved, Ripple would be regulated at both the state level by the New York Department of Financial Services (NYDFS) and through federal oversight. This would establish a new standard of trust as the market moves towards mainstream adoption of stablecoins.
Ripple’s pursuit aligns with other institutions seeking to bridge the gap between cryptocurrencies and traditional finance. Ripple issues RLUSD, a stablecoin backed by the U.S. Dollar (USD) and valued at $469 million.
This move comes shortly after Ripple applied for a Federal Reserve (Fed) master account, which would allow it to hold RLUSD reserves directly with the Fed. Garlinghouse stated that this would ensure an additional layer of security and foster confidence in RLUSD.
“Ripple has always built and will continue to build trusted, proven, and secure infrastructure. In a market of $250 billion+, RLUSD stands out by putting regulation first, setting the standard that institutions expect,” Garlinghouse said.
Ripple’s partnership with OpenPayd, announced on Monday, aims to expand cross-border transfers by integrating fiat currencies like the Euro (EUR) and the British Pound (GBP) with Ripple Payments.
This collaboration highlights Ripple’s efforts to provide institutional-grade regulated infrastructure with unique functionalities, including cross-border transfers, treasury management, and access to USD liquidity.
Technical Outlook: XRP’s Bullish Trend
XRP’s price remains above previous technical hurdles, such as the 50-day exponential moving average (EMA) at $2.21 and the 100-day EMA at $2.22. The token appears poised to extend its bullish trend above the descending trendline resistance.
A buy signal from the Moving Average Convergence Divergence (MACD) indicator, maintained since Saturday, supports the bullish outlook.
The Relative Strength Index (RSI), which has advanced to 57 from lows around 35, suggests that buyers have the upper hand. XRP’s upward trend may stabilize as the RSI approaches overbought territory.
However, traders should proceed cautiously, considering the trendline resistance and the RSI’s position as it nears overbought conditions, which could signal a potential trend reversal.
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