XRP Price Prediction: National Bank Charter Could Set Off a Recovery for XRP

XRP (XRP) has jumped by 1.5% in the past 24 hours, following news that Ripple got approval from U.S. authorities to set up a national bank.

Ripple’s Chief Executive Officer, Brad Garlinghouse, said in an X post just a few hours ago that the Ripple National Trust Bank just got the green light from the Office of the Comptroller of the Currency (OCC) to launch this federally supervised entity.

“We’ve spent over a decade building regulated financial infrastructure that institutions can actually use at scale. A national trust charter gives us an even stronger foundation for RLUSD and the institutional products we’re building across payments, custody and capital markets,” Garlinghouse commented in the official press release.

The move positions Ripple to facilitate payment solutions that connect traditional banking systems with blockchain technology and could result in increased adoption of Ripple USD (RLUSD) — the network’s native stablecoin.

In addition, this will allow the firm to offer enterprises custodian services for their crypto assets.

Adoption of RLUSD Could Accelerate Following Bank Charter’s Approval

With a $2.5 billion market cap, RLUSD is already the 9th largest dollar-pegged stable asset in the crypto ecosystem.

RLUSD has managed to outpace other stable assets in the past 7 days in terms of market cap growth with a 7% jump and could soon dethrone its closest rivals — USDG and PYUSD — if the uptrend continues.

Ripple has been securing partnerships with multiple payment platforms and banks across the globe, and obtaining the necessary licenses in top jurisdictions to operate legally and facilitate cross-border payments for institutions.

This may result in higher transaction volumes for the Ripple blockchain down the road and may increase the demand for XRP in the long term.

That said, the project still faces some hurdles on the legislative and regulatory fronts, as the U.S. continues to lack a comprehensive legal framework that regulates the offering of crypto assets and connected products to the public.

For now, Ripple would have to focus on institutional volumes — a highly competitive segment.

XRP Could Resume Its Recovery If It Breaks Above $1.31

Turning to the charts, even though today’s uptick does not seem like much in relative terms, the price action shows that XRP has recaptured a key level that we have categorized as the “pivotal” area for the token in previous price prediction articles.

The $1.31 area could trigger the resumption of XRP’s recovery toward our near-term target of $1.55 as long as a breakout is confirmed.

A W-shaped bullish pattern has formed in the 4-hour chart. A confirmed breakout typically occurs when the price rises past the neckline of that pattern, and the suggested entry comes after the price retests that same level from above.

The bank charter’s approval could be the project-specific price driver that XRP needs to recover off the $1.26 support area. Nonetheless, since we still have the Fed’s meeting ahead of us tomorrow, volatility may persist until the market gets a clearer view of the macroeconomic backdrop.

Bullish momentum has been accelerating ahead of this breakout, as the Relative Strength Index (RSI) just surged above the signal line.