XRP price is up 3.75% today as Ripple applies for banking license. With rising wedge breakout and long bias, why XRP could reach $3
Ripple's XRP is once again catching the attention of bullish traders today after surging 3.75% on July 3, to trade at $2.27 at press time.
The gain follows reports that Ripple is seeking a banking license, which would likely push $XRP prices higher during the adoption of the RLUSD stablecoin. The development has also raised questions about whether XRP can realistically jump another 32% to $3.
XRP Price Increases As Ripple Seeks Banking License
In the past 24 hours, Ripple price has risen from a low of $2.17 to a high of $2.27. At the same time, the level of market interest towards $XRP has grown significantly, considering that during the same period, the token's trading volume increased by 35% to $3.99 billion per CoinMarketCap data.
It is likely that XRP prices will continue to rise because, Ripple is seeking a national banking license that could pave the way for mainstream adoption of its RLUSD stablecoin.
According to Ripple CEO Brad Garlinghouse, this application also gives RLUSD leverage in the $250 billion stablecoin market.
If Ripple gets the nod, XRP's price will likely go through a bull run that could mirror the December-January rally that pushed the altcoin toward $3.40. Moreover, the technical structure suggests that such a move could happen.
Falling Wedge Breakout Signals 78% Rally
After surging by about 4% following the banking license application, $XRP price appears poised to move up another 78%. The move follows the creation of a falling wedge pattern that typically indicates that the trend is about to change from bearish to bullish.
This week's candlestick has crossed the upper resistance trend line, but it still needs a strong close above it.
After this breakout, the price will likely return to retest this level as support to confirm the strength of the uptrend, and if it holds, the rally could push Ripple price to $3.96.
The RSI indicator is actively defending the 50 moving average level, and Ripple continues to fluctuate above this metric, indicating that the momentum continues despite experiencing weakness.
If the indicator continues its climb and makes a higher high, it will confirm a breakout from the trendline resistance and clear the way for XRP price to reach $3.96.
Additionally, a recent analysis by Market expert supports the above bullish narrative surrounding the XRP price prediction, stating that the increased likelihood of XRP ETF approval could push XRP towards $3.
Speculative traders open long bets on XRP.
Ripple's quest for regulatory clarity following its recent banking license application has fueled futures traders' interest in the altcoin. Within 24 hours, Ripple’s open interest rose 8% to $4.62 billion, the highest in over a month, according to CoinGlass data.
The increased open interest is from traders opening long positions that the XRP price will rise, as the long/short ratio has returned to a neutral level of 1, while it remains above 2 on Binance. Furthermore, all positions opened by Hyperliquid whales on July 3 were long at press time.
Therefore, futures traders bet that the formation of a falling wedge pattern will push the XRP price higher between breakouts, possibly hitting the $3 target price.
The rally is even more likely given Ripple's ongoing efforts to get the regulatory green light to expand into the banking industry.
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