XRP news update: Ripple bank license application, chart pattern fuel potential rally to $2.65

Key point:

• Ripple Labs’ application for a US banking license has acted as a catalyst for XRP, paving the way for a potential rally to $2.65.

Ripple Labs CEO Brad Garlinghouse said in a post on X that the company “is applying for a national bank charter” from the Office of the Comptroller of the Currency (OCC). 

Garlinghouse added that the firm would come under federal and state oversight if the license is approved. That would create a “new (and unique!) benchmark for trust in the stablecoin market.”

Could XRP (XRP) benefit from the news and break out of its overhead resistance? Let’s analyze the charts to find out.

XRP price prediction

XRP rebounded off the 20-day exponential moving average ($2.19) on Wednesday and broke above the 50-day simple moving average ($2.23). That suggests the bulls are trying to gain the upper hand.

XRP/USDT daily chart. Source: Cointelegraph/TradingView

The XRP/USDT pair could rise to the $2.34 level, which is likely to pose a strong challenge. If the price turns down from $2.34 and breaks below the 20-day EMA, it signals that bears are selling on rallies. That may keep the pair inside the $2.34 to $2 range for a while.

Contrary to this assumption, if the price pierces the $2.34 level, it opens the doors for a rally to the overhead resistance of $2.65. Sellers are expected to defend the $2.65 level with all their might because a break above it could start a new up move toward $3.

Related: Here’s what happened in crypto today

XRP/USDT 4-hour chart. Source: Cointelegraph/TradingView

The pair has formed a bullish inverse head-and-shoulders pattern, which will complete on a break and close above the neckline. If that happens, the pair could rally to $2.42 and then to the pattern target of $2.76.

This positive view will be invalidated in the near term if the price turns down from the neckline and breaks below the $2.14 support. That increases the risk of a fall to $2.07.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.