XRP recovery faces headwinds despite Ripple and Meritz Securities' tokenization push in Korea

• XRP trades above $1.36 as bulls gather momentum to face a critical supply range toward $1.40.
• Ripple and Meritz Securities partner to explore institutional custody and tokenization services for South Korea’s capital markets.
• XRP holds steady above the 100-day EMA, but the 50-day and 200-day EMAs cluster limits recovery potential.

Ripple (XRP) trades in a tight range on Wednesday, with key psychological support levels at $1.30 and $1.35, while a supply-heavy upside caps the token’s recovery potential toward $1.40. Major moving averages reinforce the resistance cluster, while momentum indicators struggle to regain strength, suggesting that recovery could be an uphill task.

Broadly, market participants are focused on the impact of the United States (US) Consumer Price Index (CPI) report, expected from the Bureau of Labor Statistics (BLS) later on Wednesday. The CPI report will play a vital role in the upcoming Federal Reserve (Fed) monetary policy decision. Although the central bank is widely expected to hold interest rates in the 3.75-4.00% range, inflation data would be critical in shaping the final decision.

Ripple and Meritz Securities eye South Korea’s capital markets 

Ripple has announced a strategic partnership with Meritz Securities to build infrastructure for digital asset custody and tokenization in South Korea’s capital markets. Ripple will provide an institutional-grade digital asset storage platform, supporting transfers and settlement.

The collaboration taps Meritz Securities’ existing business structure and regulatory status, with the scope expected to widen in stages, guided by the pace of development in South Korea’s digital asset framework.

Meritz Securities is reportedly exploring a range of digital asset-related business opportunities as it prepares to integrate the asset class into the country’s regulated financial system. Among the potential offerings are “spot Exchange-Traded Funds (ETFs), fractional investment and security tokens, trading platforms, and KRW-denominated stablecoins.” The strategic partnership with Ripple is expected to support these broader efforts.

“As Korea's regulatory framework evolves, we will prepare safe and trusted digital asset financial services in stages,” Byungha Kang, Managing Director of the Strategic Planning Unit at Meritz Securities, said.

Technical analysis: XRP struggles to gain ground

XRP trades below the daily high around $1.38, with the nearest psychological support at $1.36 cushioning against a full-fledged correction. The pair is caught between moving average clusters, holding above the 100-day Exponential Moving Average (EMA) at $1.34 and the SuperTrend support at $1.30, but still capped beneath the 200-day EMA at $1.38 and the 50-day EMA at $1.39.

This configuration hints at a neutral to mildly bearish near-term bias, as price trades below the primary medium and long-term EMAs while momentum indicators remain subdued. The Moving Average Convergence Divergence (MACD) stays in negative territory with a weak downbeat profile, and the Relative Strength Index (RSI) near 42 sits in the lower half of its range, suggesting fading upside pressure rather than aggressive selling.

Immediate resistance lies first at the 200-day EMA around $1.38, followed by the 50-day EMA near $1.39. A daily close above these levels would start to erode the current cap and expose the descending resistance trendline drawn from $1.70 as the next key barrier. On the downside, the current zone near $1.37 acts as a short-term pivot, with firmer support emerging at the 100-day EMA at $1.34 and then at the SuperTrend baseline around $1.30. A break under these supports would reinforce the bearish tone and open the door to a deeper corrective phase.

(The technical analysis of this story was written with the help of an AI tool. Know more.)