XRP Bullish Cues Could Help Token Rally 91% In July

NOIDA (CoinChapter.com)— XRP prices continued to move downwards on June 26, erasing its minuscule gains from June 25, despite Ripple adding some bullish cues for the token.

One of the bullish cues in XRP’s favor was Ripple receiving approval from the Dubai Financial Services Authority (DFSA) for use in the Dubai International Financial Centre (DIFC).

This milestone enhances the DIFC’s digital asset ecosystem by enabling licensed virtual asset companies to integrate XRP into their services.

Dubai’s Regulatory Advancement

As the first external virtual asset to gain regulatory clearance within DIFC’s framework, the approval marks a crucial step in the global adoption of XRP.

The DFSA’s authorization of XRP marks a historic moment for Ripple and the broader digital asset market. This approval positions XRP alongside Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), the only other cryptocurrencies previously granted regulatory clearance within the DIFC.

This development provides XRP with the legal clarity needed to operate within one of the Middle East’s most significant financial hubs.

Dubai has long been a forerunner in virtual asset regulation, establishing a robust framework to ensure investor protection and foster innovation.

Moreover, the formation of the Virtual Assets Regulatory Authority (VARA) underscores Dubai’s outlook on crypto, balancing risk assurance with the promotion of technological advancements in financial services.

Interestingly, the approval comes even as the Ripple SEC lawsuit continues.

On-Chain Indicators Bullish For XRP

Recent data from CryptoQuant and Santiment provide compelling evidence for a bullish outlook on XRP. The CryptoQuant chart shows a consistent decline in XRP reserves on the Binance exchange, suggesting significant accumulation by investors.

As of June 25, the exchange reserve dropped to approximately 2.7 billion XRP, down from over 3 billion in early April. This reduction often indicates that investors are moving their hoxldings to private storage, reducing the immediate supply available for trading and signaling confidence in the asset’s future value.

Furthermore, Santiment’s data on XRP holders’ distribution reveals increasing accumulation among mid-level and smaller significant holders, adding to the bullish cues for the token.

Wallets holding between 1 million and 10 million XRP have seen their share rise to 15.37%. Furthermore, wallets holding between 10 million and 100 million XRP now account for 10.91% of the total supply.

The trend indicates growing interest and confidence among these holder groups, suggesting potential upward pressure on XRP’s price.

Moreover, the reduction in holdings by the largest wallets, those with over 1 billion XRP, suggests a redistribution rather than outright selling.

XRP Price Testing Key Support Level

Another bullish cue for XRP prices comes from the token testing the support of a descending channel pattern. A rebound from here could see XRP price rally about 91.5% to reach the channel’s resistance near $0.513.

At the moment, XRP price is facing bearish pressure, with the token dropping 1.6% on June 26 to reach a daily low near $0.47. However, bulls have recovered some of the lost ground, suggesting buying pressure near the channel’s support.

If the bullish cues attract more buyers, XRP price could rise to the resistance near $0.48. Flipping above it would see XRP bulls target the next resistance level near $0.5.

On the other hand, breaking below the channel could force XRP price to test the support levels near $0.46 and $0.45 before recovering.

Meanwhile, the relative strength index for XRP remained neutral, with a score of 38.35.

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