XRP falls 2% as Ripple secures financial services license in Dubai, could boost payment services in UAE

• Ripple is securing the approval of its financial services license from the Dubai Financial Services Authority.
• Ripple is preparing to provide financial infrastructure and payment services to firms in the United Arab Emirates.
• XRP is losing 2% on Tuesday, trading at $0.6219.

Ripple (XRP) receives in-principle approval from the Financial Services Authority of Dubai. The remittance firm has secured a financial services license, and this could boost the adoption of Ripple services in the United Arab Emirates, the Gulf nation that includes the emirate of Dubai.

XRP is trading 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 fell to $0.6014 early Tuesday amid recent announcements from the cross-border payments company.

Ripple is making strides in adopting its payments infrastructure in the UAE. Following the final ruling in the Securities & Exchange Commission (SEC) process, Ripple has cleared regulatory hurdles to obtain a financial services license from the Financial Services Authority (FSA) in Dubai.

As the firm prepares to launch its services to firms in the UAE, XRP investors are getting “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, which means investors are getting greedy for XRP, usually considered a positive sign for the asset.

Fear and Greed Index

XRP holders should watch the index closely. If it turns into “extreme greed,” it could signal time for a trend reversal in the asset.

Ripple’s expansion is aligned with the company’s mission to provide businesses with cost-effective cross-border payment solutions through the XRP Ledger and Ripple’s payments ecosystem.

Ripple CEO Brad Garlinghouse criticized the SEC for their approach to crypto regulation. In the press release announcing the in-principle approval of the license, Ripple’s CEO praised 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 almost 2% of its value

XRP recently broke out of a multi-month downtrend on Friday, September 27. The altcoin risks retracing to $0.5533, the 50-day exponential moving average (EMA). This would mark a 7.9% drop in XRP price.

XRP could sweep liquidity to the $0.5533 level before attempting a retracement to the 50% Fibonacci level of the decline from the July 2023 high of $0.9380 to the July 2024 low of $0.3823 .

The green histogram bars on the Moving Average Convergence Divergence (MACD) show an underlying positive momentum in the XRP price trend. Momentum is likely bearish 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 ascent towards the $0.6602 target.