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Highlights
- XRP price has gained by nearly 4% today, July 3, after Ripple applied for a banking license.
- The gains have pushed XRP to a falling wedge resistance level, whose breakout may trigger a rally to $3.96.
- Hyperliquid whales are opening long bets on XRP while open interest has surged to a monthly high of $4.62 billion.
XRP price is trading at $2.29 with a 4% gain in the last 24 hours, and more than $4.52 billion in trading volumes. This price increase comes after Ripple applied for a banking license to drive the growth of the RLUSD stablecoin. As the broader market recovers on the backdrop of this bullish news, can XRP surge to $3? Let’s explore.
XRP Price Gains as Ripple Seeks Banking License
In the last 24 hours, the Ripple price has moved from a low of $2.17 to a swing high of $2.27. At the same time, the level of market interest towards XRP has increased significantly, considering that during the same period, the token’s trading volumes rose by 35% to $3.99 billion per CoinMarketCap data.
These XRP price gains are likely to continue because, as CoinGape reported, Ripple is seeking a national banking license that could pave the way for the mainstream adoption of its RLUSD stablecoin. According to Ripple CEO Brad Garlinghouse, this application also gives RLUSD an advantage in the $250 billion stablecoin market.
If Ripple does get this approval, the XRP price will likely undergo a bull run that could mirror the December-January rally that pushed the altcoin towards $3.40. Moreover, the technical structure suggests that such a move might be underway.
Falling Wedge Breakout Hints at 78% Rally
After surging by around 4% following the banking license application, the XRP price appears ready for another 78% move to the upside. This move follows the creation of a falling wedge pattern that usually suggests that a trend is about to change from being bearish to bullish.
This week’s candlestick has moved to the upper resistance trendline, but it still needs to make a strong close above it. To confirm the strength of the upward trend after this breakout, the price will likely come back to retest this level as support, and if it does hold, the rally could push the Ripple price to $3.96.
The RSI indicator is actively defending the 50 mean level, and Ripple has continued to fluctuate above this metric, indicating that the momentum remains bullish despite facing weakness. If the indicator continues its ascent and forms a higher high, it will confirm the breakout from the trendline resistance and clear the way for the XRP price to rally to $3.96.
Moreover, a recent CoinGape analysis supports the above bullish narrative around the XRP price prediction, which stated that increased odds of an XRP ETF approval may push XRP towards $3.
Speculative Traders Open XRP Long Bets
Ripple’s quest for regulatory clarity following the recent banking license application has increased the interest of futures traders in the altcoin. CoinGlass data shows that within 24 hours, Ripple’s open interest increased by 8% to $4.62 billion, its highest in more than one month.
The rising open interest is from the traders who are opening long positions that the XRP price will rise, because the long/short ratio is back to a neutral level of 1, while it remains above 2 on Binance. Moreover, all the positions that had been opened by Hyperliquid whales on July 3 were longs at press time.
Therefore, with futures traders betting that the XRP price will surge amid a breakout from a falling wedge pattern formation, it is possible that the $3 target price could be hit. This rally becomes even more likely to happen considering the ongoing efforts by Ripple to get regulatory greenlight to expand into the banking industry.
Frequently Asked Questions (FAQs)
1. Can XRP price reach $3?
2. How will Ripple’s banking license application affect XRP price?
3. Has XRP confirmed an uptrend with the falling wedge breakout?
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