XRP Token Could Rally 91% in July, Supported by Bullish Factors
XRP prices have continued to decline on June 26, erasing the small gains made the previous day. However, Ripple’s recent developments have provided some bullish indicators for the token’s future.
One positive development for XRP is Ripple’s approval from the Dubai Financial Services Authority (DFSA) to be used in the Dubai International Financial Centre (DIFC). This milestone strengthens the digital asset ecosystem in the DIFC by allowing licensed virtual asset companies to integrate XRP into their services.
This approval marks a significant step in the global adoption of XRP, as it is the first external virtual asset to gain regulatory clearance within the DIFC’s framework. It now joins Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) as the only cryptocurrencies previously granted regulatory clearance in the DIFC.
This regulatory advancement provides XRP with the necessary legal clarity to operate within one of the Middle East’s major financial hubs. Dubai has been at the forefront of virtual asset regulation, establishing a strong framework to protect investors and promote financial service innovations.
It is worth noting that this approval comes amid the ongoing Ripple SEC lawsuit.
On-chain indicators also point to a bullish outlook for XRP. Data from CryptoQuant reveals a consistent decline in XRP reserves on the Binance exchange, suggesting significant accumulation by investors. This reduction in exchange reserves indicates that investors are moving their holdings to private storage, reducing the immediate supply available for trading and indicating confidence in the token’s future value.
Additionally, Santiment’s data on XRP holders’ distribution shows increasing accumulation among mid-level and smaller significant holders. This indicates growing interest and confidence among these holder groups, which could potentially drive up XRP’s price.
Furthermore, XRP’s price is currently testing the support of a descending channel pattern. A rebound from this support level could lead to a rally of about 91.5%, with the token reaching the resistance near $0.513.
Despite facing bearish pressure and dropping 1.6% on June 26, XRP has shown signs of recovery, suggesting buying pressure near the channel’s support. If the bullish cues attract more buyers, XRP’s price could rise to the resistance near $0.48, and potentially target the next resistance level near $0.5.
However, a break below the channel’s support could push XRP’s price to test the support levels near $0.46 and $0.45 before any recovery.
Currently, the relative strength index for XRP remains neutral, with a score of 38.35.