XRP Price Forecast: Ripple’s Europe Expansion and Bullish Breakout Put $1.18 in Focus
On Tuesday, July 21, XRP was trading around $1.13, bolstered by a technical breakout from some key price resistance levels...
Quick overview
- XRP is currently trading around $1.13, benefiting from a technical breakout and regulatory clarity, with a market cap of nearly $70 billion.
- Ripple has secured full MiCA approval to operate across 30 European countries, enhancing its appeal to banks and payment providers.
- The launch of Ripple's dollar-backed stablecoin, RLUSD, in Japan is expected to increase transaction volume on the XRP Ledger.
- Despite positive developments, macroeconomic conditions, including rising interest rates and a strong US dollar, remain a significant challenge for XRP's price.
On Tuesday, July 21, XRP was trading around $1.13, bolstered by a technical breakout from some key price resistance levels. The coin has a circulating supply of about 62.47 billion XRP and a total market capitalization of nearly $70 billion, positioning it as the sixth-largest cryptocurrency by market cap.
Although Bitcoin remaining above $65,000 is good for the crypto market as a whole, XRP is also benefitting from regulatory clarity and an expanding Ripple enterprise payment network.
Ripple Wins Full MiCA Approval Across Europe
Ripple recently got a big boost with a full license in Europe to conduct business in 30 countries. Ripple secured full authorization under the Markets in Crypto-Assets (MiCA) framework on July 6, following preliminary approval in late June.
Having full European Union authorization means Ripple can operate across all 30 European Economic Area (EEA) countries, instead of applying for a separate license in each one. The regulatory approval also enhances Ripple’s appeal to banks and other payment providers as well as fintech companies that need regulated blockchain payment infrastructure.
Ripple Payments already runs in 90 payout markets, with annual payment volume in the billions of US dollars. While the platform supports settlement in fiat currencies and stablecoins as well as XRP, higher usage increases the amount of activity on the XRP Ledger (XRPL) and helps to ensure continued demand for its ecosystem.
RLUSD Expansion Adds Another Growth Driver
Ripple has also announced that its own dollar-backed stablecoin, RLUSD, has launched in Japan through SBI VC Trade, after getting approval by the Japanese regulator, the Financial Services Agency.
RLUSD is stable and maintains a 1:1 peg to the US dollar, which is maintained by US dollar reserves that are held in cash and cash-equivalent assets. Unlike XRP, which serves as a bridge currency for cross-border transactions and liquidity, Ripple has stated that it sees RLUSD as a more traditional settlement asset.
As a result, the RLUSD launch will help expand Ripple’s presence in one of the biggest and most tightly regulated markets in Asia and could increase transaction volume on the XRP Ledger as a greater number of institutions come on board.
Institutional Access Continues Improving
Another area that is driving the price up is institutional investment. Institutional investors can now buy 21Shares XRP (TOXR) through most brokerages with no need to buy the coin from exchanges and store the asset in self-custody wallets with the appropriate security protocols.
Also, Ripple is continuing to expand beyond payments to focus on tokenized assets, DeFi, and other applications that could be used for institutional and enterprise settlement. With the XRPL, users can now run decentralized exchanges with decentralized market makers as well as run compliance and other programs specifically designed for financial institutions. However, XRP faces stiff competition in this space, particularly from Ethereum (ETH) and the Solana (SOL) blockchain and others.
Macro Environment Remains the Biggest Headwind
In fact, macro conditions remain the biggest drag on the price. Brent crude is around $90 per barrel, while West Texas Intermediate (WTI) crude is trading at above $84 per barrel. In addition, the Federal Reserve was under pressure after recent data showed that retail sales in the US remain strong and the employment market stays tight, so higher for longer rates have become likely in the near term.
In general, the market is also feeling increased Treasury yields and a stronger US dollar that have limited the upside for the broader crypto market and XRP as well. Like other coins, XRP has increasingly traded as a liquidity-sensitive asset, so wider macro sentiment is just as important as the specific developments on Ripple’s side.
XRP Technical Outlook Turns Bullish
On the technical front, the chart has gotten much more favorable for XRP.
XRP has broken out from a symmetrical triangle that had been in place for a few weeks and retook the 50-period exponential moving average ($1.1014) and the 100-period EMA ($1.0997), which means that short-term buyers have regained control.
With prices now above $1.1260, the target is the next resistance zone around $1.1563 and then the area near $1.1827. Meanwhile, the Relative Strength Index (RSI) has ticked higher to 71.5, which means that upward pressure remains strong, but could start to slow down soon.
XRP needs to hold above $1.1260 for the pattern to remain intact. Support is currently located near $1.1260 with follow-on levels at $1.0890, where both moving averages are converging. XRP falling back below $1.0890 could undermine this bullish outlook, exposing the rising trendline around $1.0600.
Conclusion
XRP appears poised for gains into the second half of July, with regulatory approval for full operations across Europe, expansion in Asia with RLUSD, and greater regulatory adoption for investors overall all acting to strengthen the Ripple payments network.
For now, XRP prices remain more heavily influenced by the broader macro picture, including the strength in US interest rates, the strength in the US dollar, and higher global bond yields.
But from a technical perspective, the pattern looks better for XRP after the price broke back above $1.1260. As long as that level holds, the next targets are the resistance levels around $1.1563 and $1.1827. Falling back below $1.0890 would be a sign that bullish pressure has waned, but so far, both the fundamentals and technical structure of XRP appear to be moving in a positive direction.
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