Ripple’s Banking Pursuits Receive Resistance, Impact on XRP Price

XRP price was off to what appeared to be a robust recovery earlier this week. However, its mid-week performance somewhat faltered before it resumed its path to recovery today.

XRP dominance bounced from as low as 4.55% on Sunday to 4.93% at its peak on Tuesday.

However, it dropped to 4.77% at the time of observation. This dip influenced XRP price action. XRP price previously rallied by about 13% between Sunday and Monday.

During this time, it managed to push as high as $3.10, but it has since retreated to a $2.95 price tag at press time.

The outcome was a sign of relatively weak demand despite the previous bullish expectations. The retracement also meant that XRP risked dropping below its 3-month ascending trend line.

A structure breakdown below support may be on the cards and could potentially be perpetuated by a recent major challenge for Ripple.

Ripple Banking Efforts Face Major Resistance

The end of the long-standing legal battle between Ripple and the SEC was expected to yield positive outcomes for its pursuits.

Some analysts anticipated that the company would effectively start pushing forward with previous efforts aimed at partnering with banks.

Instead, Ripple surprised observers with an unforeseen move early in July when it submitted a filing for a banking license.

This effectively meant that it was looking to cut down the intermediaries in its attempts at becoming a critical part of the financial infrastructure’s future.

Recent reports revealed that about 43 banks have opposed Ripple’s banking charter application.

The Independent Community Bankers of America (ICBA) reportedly cited compliance issues as one of the reasons for their opposition.

However, it was also possible that the members of the banking association were concerned that Ripple could become a dominant player.

This fresh opposition undercut the latest excitement around XRP.

Developments such as the end of the SEC-Ripple legal battle and this latest license application have previously revived XRP investor optimism.

However, it was worth noting that XRP’s struggle to maintain a strong upside was also influenced by overall market factors.

Top coins, including Bitcoin and Ethereum, also demonstrated similar struggles. This meant that demand across the board was a bit hesitant towards heavy accumulation.

XRP Flashes Moderate Demand

XRP on-chain stats disclosed that there was some moderate demand in the spot segment. Spot netflows were in the green by roughly $12 million in the last 24 hours.

However, netflows were still in favor of the bears by about $29 million in the last 7 days. Open interest hovered around $7.15 billion at press time, which was a slight increment from its weekly low.

However, funding rates were still relatively low compared to mid-June levels, confirming the cautious investor outlook.

Despite the slightly hesitant state of the market, XRP whales still upheld significant activity.

For context, there was roughly $19.72 million worth of fulfilled whale orders on Binance, OKX and Coinbase since Monday.

Binance also had about $719 million worth of perpetual buys from whales during the same period.

However, OKX had about $164 million worth of short net shorts from whales. These activities made it abundantly clear that demand was relatively weak.

XRP exchange revealed that there was a large number of long positions were slated for liquidations below the $2.88 price level.

On the other hand, short liquidations were slated for a maximum pain point above $3.11.

Recent liquidation data revealed a dip in both long and short liquidations. This outcome was aligned with the recent sentiment pullback from greed to neutral.

A clear indication that the cautious outlook for August had a clear impact on risk appetite and leverage appetite.

That said, in latest XRP news update, the price has observed an uptick of 1.43% and was trading at $3.09, reigniting hopes of a positive turn for the price action.