XRP fails to surpass a key resistance level as Ripple secures first Dubai license
- Ripple revealed that it has received licensing from Dubai's Financial Services Authority.
- The announcement makes Ripple the first crypto payments provider to receive a license in the Middle East.
- XRP saw a rejection near the upper boundary of a descending channel as bulls failed to hold onto buying pressure.
XRP held steady around $2.20 on Thursday following an announcement from Ripple that it has secured a regulatory license from the Dubai Financial Services Authority (DFSA) to offer crypto-related services in the Dubai International Finance Center (DIFC).
Ripple bags Dubai license to offer crypto payments to businesses
Ripple announced that it had secured a regulatory license from the DFSA in Dubai to begin issuing crypto payment services to businesses in the region.
This makes Ripple the first crypto payments provider to be licensed by the DFSA.
"We are thrilled that Ripple is deepening their commitment to Dubai by securing a DFSA license that makes them the first blockchain-enabled payments provider in DIFC," His Excellency Arif Amiri, Chief Executive Officer of DIFC Authority stated in a press release on Thursday.
The license follows Ripple's claim that 20% of its global user base currently operates in the Middle East.
"We are entering an unprecedented period of growth for the crypto industry, driven by greater regulatory clarity around the world and increasing institutional adoption," said Brad Garlinghouse, Chief Executive Officer of Ripple.
Ripple previously secured Money Transmitter Licenses (MTLs) in New York and Texas amid their strict regulatory standards. The New York and Texas licenses enabled Ripple to extend its payment solutions to customers in these regions.
Ripple claims to hold over 50 MTLs across the US and a portfolio of more than 60 licenses worldwide.
Meanwhile, Ripple could be on the verge of ending its multi-year legal battle with the US Securities & Exchange Commission (SEC). The case is reportedly delayed due to Ripple's lawyers demanding more favourable terms than the company got from Judge Analisa Torres’ ruling at the district court level in August.
XRP fails to move above descending channel's resistance
XRP saw $10.2 million in futures liquidations in the past 24 hours, per Coinglass data. The total amount of long and short liquidations is $5.15 million and $5.06 million, respectively.
XRP tested the upper boundary of a descending channel following the announcement of its Dubai license. However, it saw a rejection as bulls failed to sustain the buying pressure.
XRP/USDT daily chart
The descending channel's upper boundary is strengthened by the 50-day Exponential Moving Average (EMA) and Simple Moving Average (SMA). A move above this channel could push XRP to surpass the $2.72 resistance.
On the downside, XRP could find support near the $2.00 psychological level. The channel's lower boundary could help prevent a further decline if the $2.00 support fails.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are below their neutral levels but trending upward, indicating that bearish momentum is gradually slowing down.
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
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
