XRP Price News: Is The Worst of XRP’s Latest Pullback Over?

Today, Ripple USD (RLUSD) is recognized by Dubai authorities as an official cryptocurrency. This allows institutions to embrace the stablecoin and use it within the Dubai International Financial Centre.

As a result, Ripple is now able to promote its enterprise-grade blockchain-based payment solutions to new clients in Dubai. This could increase the demand for RLUSD dramatically and also push XRP higher as the utility token of the Ripple network.

“With almost 7,000 firms active at the end of 2024, this further supports the integration of high-quality stablecoins into Dubai’s burgeoning digital assets and fintech ecosystem,” the company commented in a press release published today.

Dubai comes to join the growing list of countries in which Ripple is now allowed to offer licensed payments. The list includes Brazil, Mexico, Australia, and Switzerland.

Although the announcement is not necessarily the reason why XRP is rising today, it is an important step for this blockchain project in its mission of becoming the world’s preferred cross-border payment solution.

Ripple USD Is Not Big Enough to Move XRP Yet

Ripple USD has been increasing its market cap steadily since it was launched in December last year. Currently, $310 million worth of RLUSD are circulating across multiple exchanges including Bitget, Kraken, Uniswap, and Bitstamp.

Despite its rapid growth, its market share is still quite small as RLUSD sits at the 15th place in the list of most valuable stable assets by market cap.

XRP has been dropping sharply since May 23 after the token experienced strong selling pressure at around $2.5.

Rising tensions between the United States and China exacerbated a much-needed correction in the crypto market.

Prices rallied since late April, but momentum indicators were already flashing sell signals as we entered the last few days of May.

The decline pushed XRP near the $2 leve,l but the price found a floor at $2.08 temporarily and has now recovered to the point that it is retesting a key level at around $2.28. This is a former support area that could now act as resistance.

XRP Retests $2.8 Resistance

In the daily chart, the price, along with its short-term exponential moving averages (EMAs), is still standing above the 200-day EMA.

Meanwhile, the hourly chart shows that the 9-period EMA has now crossed above the 200-period EMA.

Even though this is all bullish, lower time frame EMA crossovers are not as powerful as daily ones. Hence, traders should not interpret this as a strong buy signal but rather a sign that the short-term trend is very bullish.

If the price rejects a move above $2.8, this retest could spell trouble for XRP and could push the token back to the $2 level in a relatively short period.

Three key areas of support stand in the way and could cushion the decline to give the recovery some more legs. The most relevant one seems to be the $2.20 area as a bounce off this level would maintain XRP’s bullish structure.