- XRP is struggling to find demand at a key resistance level despite major upside.
- Ripple is making progress in Singapore after receiving an operating permit.
Ripple’s XRP cryptocurrency is back on the road to recovery after giving up the gains made in July. However, this rally attempt faced a key resistance level that could make it difficult to overcome the lower range.
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Many traders saw the pullback in August and part of September as an opportunity to secure more XRP at discounted prices. After all, the previous peak in July confirmed that the cryptocurrency can still generate robust demand when conditions are favorable. The rally over the past three weeks indicated that there was significant accumulation.
That rally has now pushed XRP into a key resistance range at the $0.54 price range. It has now been retested at the same level three times in the last seven days. This was confirmation that the same price level is once again providing significant resistance.
Source: TradingView
For those concerned about the possibility of another pullback, the good news is that the Money Flow Index (MFI) indicated that selling pressure was low. The previous rally was caused by a demand shock following Ripple’s victory. The XRP may need another catalyst to achieve a breakout beyond the current resistance zone.
A step in the right direction for mass adoption and institutional liquidity
According to a recent announcement, Ripple has just obtained a license to provide digital payment token services in Singapore. This indicates that the initial announcement about Ripple’s win over the SEC is already paving the way for a favorable regulatory environment.
It’s official: Ripple is now fully licensed to provide digital payment token services in Singapore @MAS_sg! Ripple is committed to providing real-world crypto solutions for businesses in APAC.
Learn more: https://t.co/jD8xSc2pdd
— Ripple (@Ripple) October 4, 2023
The Singapore license will pave the way for Ripple to attract institutional investments in the Asian country. This is the type of development that usually impacts investor sentiment. So, how did XRP fare after the announcement?
Read more about XRP price prediction for 2024
The first key observation was that there was a large spike in social dominance over the past 24 hours. However, it is worth pointing out that this was short-lived.
Meanwhile, weighted sentiment was already trying to recover from the lowest level of the past four weeks. However, the data was not as current to indicate a clear impact from the announcement.
Source: Santiment
While the weighted sentiment metric may be missing, other metrics may prove more useful. For example, the volume metric recorded its highest monthly spike in the last 24 hours. There was also a significant increase in the number of daily active addresses during the same period.
Source: Santiment
XRP demand failed to break past the resistance line despite the above findings, as noted earlier. This could be due to the resurgence of selling pressure near the resistance level, undoing any incoming bullish momentum.