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XRP Recovers from Early Losses After Ripple Secures Two New Licenses in the U.S.

Published: Jan 27, 2025, 19:00 GMT+00:00

The price of the native token of the Ripple network, XRP, managed to cut a big portion of the losses it took earlier today after the company announced that it secured two money transmitter licenses (MTLs) in the states of New York and Texas.

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At some point in the session, XRP dropped to $2.65, booking a 12.3% intraday loss. However, since the announcement came out, the price has recovered to around $2.95 per coin, with daily losses now standing at 2.9% only.

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With the addition of these two new licenses in the U.S., Ripple now holds MTLs in 50 different states, meaning that they can legally provide their payment services to both individuals and organizations in these locations.

This is an important step for the company in its mission to become the preferred option for cross-border payments. Ripple has also managed to secure licenses in Singapore, Ireland, and the Cayman Islands as a provider of digital payment services.

“We’re continuing to see more interest from financial institutions to crypto businesses that want to unlock the benefits of crypto and blockchain for faster, cost-efficient and 24/7 cross-border payments,” commented Joanie Xie, Managing Director of North America at Ripple.

The launch of Ripple USD (RLUSD) earlier this year has also been a pivotal step for this blockchain company as the stablecoin comes to strengthen its ecosystem by providing institutions with a dollar-backed alternative that they can use for treasury management and payments via the Ripple network.

This Technical Signal Predicts Further Drops Ahead for XRP

XRP stands out as the best-performing cryptocurrency of the top five (ex. Tether) with gains of 41.1% since the year started despite today’s drop.

However, the price did not manage to make a new all-time high and retreated right after hitting its January 2018 peak of $3.4 per token.

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Bulls managed to push the price above an early December resistance that is now acting as support during today’s session. However, if XRP loses the $2.65 support that popped up today, the odds favor a more dramatic pullback, possibly to the $2.2 zone.

Meanwhile, the MACD, a widely followed technical indicator, has sent a sell signal and momentum has already turned negative for XRP based on its histogram reading.

For now, the price is still the 200-day exponential moving average (EMA), meaning that the trend favors bulls.

Hence, this latest weakness could be interpreted as a move from early buyers to take profits after what has been a remarkable rally for XRP since the year started.

Donald Trump’s Victory is Ripple’s Strongest Tailwind

Ripple’s victory over the United States Securities and Exchange Commission (SEC) in a long-where XRP was classified as a security was welcomed by investors as the judge ended up imposing a $125 million on the firm to settle the legal dispute.

Even though the SEC appealed to all of the court’s rulings on the case, the Trump administration and the Chairman of the regulatory agency may lean toward dropping the case entirely.

Recently, the institution’s acting Chairman, Mark Uyeda, announced the creation of a “Crypto Task Force” that will work alongside relevant industry players to provide as much regulatory clarity as possible to fulfill Trump’s vision of making America the “crypto capital of the world.”

The performance of XRP could still be severely impacted by an unexpected interest rate decision from the Federal Reserve on Wednesday. However, if everything stays the same, these two licenses may play a positive role in pushing the price of XRP as the network keeps working hard to increase adoption rates across U.S. territory.

About the Author

Bob MasonChief Crypto Boss

TEST 30 He has written extensively for a broader audience and his current focus is on developments relating to the financial markets including, but not limited to currencies, commodities, alternative asset classes, and global equities.

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