XRP down 2% as Ripple secures financial services license in Dubai, could boost payment services in UAE
- Ripple secures approval of its financial services license from Dubai Financial Services Authority.
- Ripple gears up to offer its financial infrastructure and payment services to firms in the UAE.
- XRP loses 2% on Tuesday, trading at $0.6219.
Ripple (XRP) receives in-principle approval from Dubai’s Financial Services Authority. The payment remittance firm secured a financial services license, and this could bolster adoption of Ripple services in the United Arab Emirates, the Gulf nation that includes the emirate of Dubai.
XRP trades at $0.6014 at the time of writing.
Daily Digest Market Movers: Ripple makes key announcement, secures license
XRP lost key support at $0.6200 and dipped to $0.6014 early on Tuesday amid recent announcements from the cross-border payment firm.
Ripple is making strides in the adoption of its payment infrastructure in the UAE. Following the final ruling in the Securities & Exchange Commission (SEC) lawsuit, Ripple cleared regulatory hurdles to obtain a financial services license from Dubai’s Financial Services Authority (FSA).
We’re delighted to have secured in-principle approval of a financial services license from Dubai Financial Services Authority, unlocking our end-to-end managed payments services in the UAE. https://t.co/4zq8YPlgaG
— Ripple (@Ripple) October 1, 2024
As the firm prepares to roll out its services to firms in the UAE, XRP investors turn “greedy” according to the Fear & Greed Index used to measure sentiment among market participants. On a scale of 0 to 100, the index reads 63, meaning investors are turning greedy for XRP, typically considered a positive sign for an asset.
Fear & Greed Index
XRP holders need to watch the index closely. If it turns to “extreme greed” it could signal time for a trend reversal in the asset.
Ripple’s expansion is aligned with the firm’s mission to provide businesses with cost-effective cross-border payment solutions through the XRP Ledger and the Ripple payment ecosystem.
Brad Garlinghouse, CEO of Ripple, has slammed the SEC for their approach on crypto regulation. In the press release announcing the in-principle approval of the license, the Ripple CEO appreciated the UAE’s regulatory approach and said, “The UAE is positioning itself as a global leader in this new era of financial technology.”
Technical analysis: XRP slips to $0.6047, erases nearly 2% of its value
XRP recently broke out of a multi-month downward trend on Friday, September 27. The altcoin risks a return to $0.5533, the 50-day Exponential Moving Average (EMA). This would mark a 7.9% decline in XRP price.
XRP could sweep liquidity at the $0.5533 level before attempting a recovery to the 50% Fibonacci level of the decline from the July 2023 top of $0.9380 to the July 2024 low of $0.3823.
The green histogram bars on the Moving Average Convergence Divergence (MACD) show underlying positive momentum in the XRP price trend. The momentum is likely waning as the green histogram bar is shorter on Tuesday.
XRP/USDT daily chart
A daily candlestick close above $0.6412, Monday’s close, could invalidate the bearish thesis, and XRP could then resume its climb toward the $0.6602 target.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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