XRP Price Risks 20% Drop Despite Ripple Banking License Approval

Source: CryptoNewsNet Original Title: XRP price risks a 20% drop despite Ripple banking license approval Original Link:

Market Overview

XRP price continued its recent downtrend despite significant regulatory developments. The token has fallen approximately 45% from its year-to-date high and is currently stuck in a technical bear market.

Key Points:

• XRP price dropped to a low of $1.980, continuing a downtrend that started in July when it peaked at $3.6600
• OCC granted Ripple Labs a national banking charter
• The charter allows the company to offer custody services
• Multiple ETF approvals and strong inflows have not reversed the price decline

Banking License Approval

One of the most significant developments occurred when the OCC granted Ripple Labs a conditional license to operate its trust bank. In an official letter to Brian Spahn, Ripple’s Senior Director of Compliance, the OCC stated:

“The OCC has granted preliminary conditional approval only. Final approval and authorization for the Bank to commence business will not be granted until all pre-opening requirements are met.”

This banking license is crucial for Ripple as it enables the company to diversify revenue sources. The company can now offer custody solutions to recently acquired subsidiaries like GTreasury and Hidden Road. Additionally, Ripple is expected to transition its Ripple USD (RLUSD) stablecoin operations to its own bank, potentially saving millions in custody fees long-term.

ETF Inflows Cannot Offset Price Decline

Despite regulatory progress, XRP price has declined following SEC approval of multiple ETFs. The 21Shares XRP ETF approval this week was expected to boost demand. All existing XRP ETFs, including REX-Osprey’s XXRP, have accumulated over $1 billion in inflows with zero days of outflows—a sign of resilient demand.

However, the broader crypto market downturn has overwhelmed positive developments. XRP price has declined even as Ripple USD gained over $1.3 billion in assets under management and the company achieved a $40 billion valuation.

Technical Analysis Points to Further Downside

The daily chart reveals persistent downward pressure on XRP throughout the year. The token remains below the descending trendline connecting the highest points since October 2.

Technical Indicators:

• XRP has moved below the 50-day moving average
• The Supertrend indicator signals bearish momentum
• Critical support at $2.0 has been lost

Based on technical analysis, the most likely XRP price forecast remains bearish, with the key downside target at $1.5625 (the Murrey Math Lines tool support level)—approximately 20% below current levels.