- XRP jumped 3.75% to $2.27 after Ripple applied for a banking license, and trading volumes increased by 35% in 24 hours.
- Technical analysis shows a falling wedge pattern that could push XRP up 78% to $3.96, while futures traders open long positions betting on price gains.
XRP experienced a notable price increase of 3.75% on July 3, reaching $2.27 during trading hours. The cryptocurrency gained momentum following reports that Ripple Labs is pursuing a national banking license. This regulatory development has sparked renewed interest among investors and traders.
The price movement occurred within a 24-hour window, with XRP climbing from a low of $2.17 to its current trading level. Market activity intensified during this period, with trading volumes increasing by 35% to reach $3.99 billion according to CoinMarketCap data.
Banking License Application Drives Market Interest
Ripple’s pursuit of a national banking license represents a strategic move to expand its financial services offerings. CEO Brad Garlinghouse stated that obtaining regulatory approval would give RLUSD stablecoin competitive advantages in the $250 billion market.
The banking license application has generated speculation about XRP’s potential price trajectory. Analysts suggest regulatory approval could trigger a substantial rally similar to the December-January period when XRP reached $3.40.
Market participants view the banking license as a catalyst for mainstream adoption of Ripple’s payment solutions. The company’s focus on regulatory compliance has positioned it favorably within the evolving cryptocurrency landscape.
Chart analysis reveals the formation of a falling wedge pattern, which typically signals a potential trend reversal from bearish to bullish. Technical indicators suggest XRP may be positioned for a significant upward movement.
The weekly candlestick has approached the upper resistance trendline of the falling wedge. A strong close above this level would confirm the breakout and potentially trigger further price appreciation.
Despite recent market volatility, the Relative Strength Index (RSI) maintains support above the 50 mean level, indicating sustained bullish momentum. If the RSI continues its upward trajectory and forms higher highs, it would validate the technical breakout scenario.
Based on the falling wedge pattern, price targets suggest XRP could reach $3.96, representing approximately 78% gains from current levels. This projection aligns with historical price movements and technical pattern analysis.
Futures Market Activity Supports Bullish Sentiment
Derivatives market data indicates increased institutional and retail interest in XRP positions. Open interest rose 8% to $4.62 billion within 24 hours, marking the highest monthly level.
The long/short ratio has returned to neutral levels around 1.0, while Binance shows ratios above 2.0, suggesting traders are positioning for upward price movement. Hyperliquid whale activity on July 3 consisted entirely of long positions, reinforcing the bullish sentiment.
This futures market activity coincides with the technical breakout setup, creating multiple confluences for potential price appreciation. Regulatory developments and technical formations have attracted speculative capital to XRP markets.
Traders note that regulatory clarity through banking license approval could catalyze sustained price growth. The convergence of technical and fundamental factors suggests XRP may be approaching a significant price inflection point.
The cryptocurrency’s ability to maintain current levels while building momentum toward the $3 target will depend on successfully navigating regulatory processes and continued market demand for Ripple’s payment solutions.
Disclaimer
The content shared on KryptoVaultDaily is for informational purposes only and does not constitute financial or trading advice. We do not offer guarantees and assume no responsibility for investment decisions based on the material provided. Always research and seek guidance from a licensed financial advisor before trading cryptocurrency or investing.
