XRP Bulls to Target $0.55 on Ripple News and Fed Bets

Key Insights:

• On Thursday, XRP ended a five-day winning streak, falling by 1.13% to end the day at $0.49441.
• News of Ripple obtaining an in-principal approval for a Major Payments Institution License from the MAS delivered an early breakout.
• However, the technical indicators remained bullish, supporting a return to $0.55.

On Thursday, XRP fell by 1.13%. Partially reversing a 1.40% gain from Wednesday, XRP ended the day at $0.49441. Despite the bearish session, XRP revisited the $0.52 handle for the first time since June 14.

A bullish morning saw XRP rise to an early high of $0.52638. XRP broke through the Major Resistance Levels before hitting the reverse. The reversal saw XRP fall to a late morning low of $0.48233. XRP briefly fell through the First Major Support Level (S1) at $0.4920 and the Second Major Support Level (S2) at $0.4838 before ending the day at $0.49441.

MAS Grants In-Principal Approval for a Major Payments Institution License

It was a busy Thursday. News of the MAS granting Ripple an in-principal approval for a Major Payments Institution License sent XRP to the session high of $0.52638.

Ripple Chief Legal Officer Stuart Alderoty shared the news, saying,

“MAS Singapore has built a workable framework that truly unites consumer protection, market integrity, and innovation. They’ve also outlined a clear taxonomy to classify and regulate digital assets – making it possible for companies like Ripple to build and offer compliant products.”

Alderoty added,

“It’s been said many times, but bears repeating – regulatory clarity is what will help drive crypto utility for real-world use cases.”

The MAS License will allow Ripple to offer regulated digital asset products and services and scale customer use of ODL.

However, there were no updates from the ongoing SEC v Ripple case to support an extended rally. The lack of Court updates left the broader crypto market to drag XRP into negative territory.

The Day Ahead

It is a relatively busy Friday session. US private sector PMIs and Fed chatter will influence the afternoon. Better-than-expected US services PMI numbers and dovish Fed chatter would support a bullish session. FOMC members Bullard and Bostic are on the calendar to speak today.

While the stats and FOMC member commentary will move the dial, SEC v Ripple Court activity will remain the key driver, with SEC v Binance and Coinbase (COIN) case-related news also needing consideration.

XRP Price Action

At the time of writing, XRP was up 0.53% to $0.49701. A bullish start to the day saw XRP rise from an opening price of $0.49389 to a high of $0.49712.

XRP Technical Indicators

The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.

At the time of writing, XRP sat above the 100-day EMA, currently at $0.49623. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A bullish cross of the 50-day EMA through the 100-day EMA would support a move through R1 ($0.5198) to target R2 ($0.5451) and $0.55. However, a fall through the EMAs would bring S1 ($0.4757) into view. A fall through the 50-day EMA ($0.49453) would send a bearish signal.

Resistance & Support Levels