XRP loses 2% even as Ripple secures Dubai license
- Ripple secures approval of its financial services license from Dubai Financial Services Authority.
- Ripple gears up to offer its financial infrastructure and payment services to firms in the UAE.
- XRP loses 2% on Tuesday, trading at $0.6219.
Ripple (XRP) receives in-principle approval from Dubai’s Financial Services Authority. The payment remittance firm secured a financial services license, and this could bolster adoption of Ripple services in the United Arab Emirates, the Gulf nation that includes the emirate of Dubai.
XRP trades at $0.6014 at the time of writing.
Daily Digest Market Movers: Ripple makes key announcement, secures license
XRP lost key support at $0.6200 and dipped to $0.6014 early on Tuesday amid recent announcements from the cross-border payment firm.
Ripple is making strides in the adoption of its payment infrastructure in the UAE. Following the final ruling in the Securities & Exchange Commission (SEC) lawsuit, Ripple cleared regulatory hurdles to obtain a financial services license from Dubai’s Financial Services Authority (FSA).
We’re delighted to have secured in-principle approval of a financial services license from Dubai Financial Services Authority, unlocking our end-to-end managed payments services in the UAE. https://t.co/4zq8YPlgaG
— Ripple (@Ripple) October 1, 2024
As the firm prepares to roll out its services to firms in the UAE, XRP investors turn “greedy” according to the Fear & Greed Index used to measure sentiment among market participants. On a scale of 0 to 100, the index reads 63, meaning investors are turning greedy for XRP, typically considered a positive sign for an asset.
Fear & Greed Index
XRP holders need to watch the index closely. If it turns to “extreme greed” it could signal time for a trend reversal in the asset.
Ripple’s expansion is aligned with the firm’s mission to provide businesses with cost-effective cross-border payment solutions through the XRP Ledger and the Ripple payment ecosystem.
Brad Garlinghouse, CEO of Ripple, has slammed the SEC for their approach on crypto regulation. In the press release announcing the in-principle approval of the license, the Ripple CEO appreciated the UAE’s regulatory approach and said, “The UAE is positioning itself as a global leader in this new era of financial technology.”
Technical analysis: XRP slips to $0.6047, erases nearly 2% of its value
XRP recently broke out of a multi-month downward trend on Friday, September 27. The altcoin risks a return to $0.5533, the 50-day Exponential Moving Average (EMA). This would mark a 7.9% decline in XRP price.
XRP could sweep liquidity at the $0.5533 level before attempting a recovery to the 50% Fibonacci level of the decline from the July 2023 top of $0.9380 to the July 2024 low of $0.3823.
The green histogram bars on the Moving Average Convergence Divergence (MACD) show underlying positive momentum in the XRP price trend. The momentum is likely waning as the green histogram bar is shorter on Tuesday.
XRP/USDT daily chart
A daily candlestick close above $0.6412, Monday’s close, could invalidate the bearish thesis, and XRP could then resume its climb toward the $0.6602 target.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
