XRP fell by 0.44% on Thursday and ended the day at $0.6058.
Crypto market tensions with the SEC were evident after Halloween messages targeting the crypto community.
Meanwhile, Dubai approves XRP for the Dubai International Financial Center.
The Thursday Overview
On Thursday, XRP declined by 0.44%. Following a 1.42% gain on Wednesday, XRP ended the day at $0.6058. Notably, XRP ended a five-session winning streak.
XRP Gets Green Light for the Dubai International Financial Center
On Thursday, Ripple announced the approval of XRP under the virtual asset regime of the Dubai Financial Services Authority (DFSA), saying,
“Today, the Dubai Financial Services Authority (DFSA) approved XRP under its virtual assets regime – allowing licensed firms in the Dubai International Financial Centre (DIFC) to incorporate XRP into their virtual asset services.”
According to the official announcement,
“Since the DFSA opened up external applications, XRP is the first virtual asset to be approved by the regime. XRP joins BTC, ETH, and LTC as the assets previously approved under the DFSA’s virtual asset regime. XRP now stands to benefit from legal and regulatory clarity in the DIFC, and will be available for use by institutions located in the DIFC to accelerate faster, more efficient global value exchange.”
Ripple CEO Brad Garlinghouse said,
“Dubai continues to demonstrate global leadership when it comes to the regulation of virtual assets and nurturing innovation. It’s refreshing to see the DFSA encourage the adoption and use of digital assets such as XRP to position Dubai as a leading financial services hub, intent on attracting foreign investment and accelerating economic growth.”
“Ripple will continue to double down on its presence in Dubai and we look forward to continuing to work closely with regulators to realize crypto’s full potential.”
Ripple Chief Legal Officer Stuart Alderoty had this to say about the news,
“Doing business in the DIFC free zone puts you under a regulator (DFSA) that is providing clear guidance and rulebooks – no wonder entrepreneurs are flocking to Dubai.”
Dubai: A World Apart from the SEC and the US Crypto Regulatory Landscape
On Thursday, there were no SEC v Ripple case-related updates for investors to consider. Notably, the news from Dubai contrasts with the lack of progress toward a regulatory framework in the US. The US digital asset space remains at the mercy of the SEC and its regulation-by-enforcement mantra.
SEC Chair Gary Gensler echoed the anti-crypto stance of the US Administration during the Halloween holidays. Despite the lack of a definitive law placing cryptos in the securities basket, Gensler targeted the US crypto space, saying,
“If Satoshi Nakamoto went as Satoshi Nakamoto for Halloween, would we be able to tell? Happy 15th Anniversary to Satoshi’s famous white paper that started crypto. Any crypto companies that are tricking investors should start treating them to compliance with securities laws.”
SEC Chair Gensler’s anti-crypto rhetoric may continue to push the crypto market beyond US borders.
XRP Price Action
XRPUSD 031123 Weekly Chart
XRP remained above the 50-day and 200-day EMAs. An XRP move through the Thursday high of $0.6268 would give the bulls a run at the $0.6354 resistance level.
SEC activity and crypto-spot ETF-related news will remain focal points.
An XRP break below the $0.5835 support level and the trend line would bring the $0.5470 support level into play.
The 74.05 14-day RSI reading shows XRP in overbought territory. XRP may succumb to increasing selling pressure, barring a market catalyst.
XRPUSD 031123 Daily Chart
In the 4-hourly Chart, XRP holds above the 50-day and 200-day EMAs, sending bullish price signals.
An XRP return to $0.63 would support a move to the $0.6354 resistance level.
However, a fall through the $0.5835 support level would give the bears a run at the trend line and the 50-day EMA. Buying pressure may intensify at $0.5765. The 50-day EMA is confluent with the trend line.
The 4-hourly RSI, with a reading of 55.85, suggests an XRP return to $0.62 before entering overbought territory.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.