Ripple Labs' application for a U.S. national bank charter is generating massive investor optimism and boosting XRP's price.
If approved, the bank charter would add Ripple into the traditional financial system.
Despite recent price resilience, some technical analysts are warning of a possible 50-70% price correction for XRP.
Other analysts are bullish and predict between $3.70 and $27 based on alternative technical indicators.
XRP is in the news again and is enjoying stability from a mix of technical chart patterns and major developments from Ripple Labs.
While bullish catalysts like Ripple’s application for a U.S. national bank charter are injecting fresh momentum, technical analysts are warning that a correction may be on the horizon.
XRP currently hovers around $2.27, and the debate is growing louder. Will the price continue its upward climb, or is a 50–70% drawdown looming?
Ripple Labs recently filed for a national bank charter with the U.S. Office of the Comptroller of the Currency (OCC).
This move has enough potential to reshape XRP’s role in the crypto and trad-fi spaces.
If approved, Ripple would operate as a federally regulated trust bank. This event would also open the door to deeper use cases for XRP like cross-border payments, stablecoin issuance and even a Federal Reserve master account.
The news was announced on July 2 and has already had a major effect on XRP’s price action.
Between 6 to 7 July, the token gained 2.36% and moved from $2.21 to $2.26 with trading volumes that hit a high of over 67 million XRP in a single hour.
This upward movement helped XRP break through a major resistance level at $2.28.
Analysts believe this charter application could open the door to better institutional adoption and make XRP more appealing for larger operations than mere speculative trading.
XRP’s recent price movement has shown resilience, so far, especially at the $2.24–$2.25 support range.
Buyers have stepped in consistently to defend this level, with the most aggressive breakout occurring at 10:00 on July 6 and pushing XRP past the $2.28 mark.
On July 7, the token closed at $2.27 after another 2.29% gain in the final hour of trading.
Ongoing XRP price action | Source: TradingView
So far, current resistance lies in the $2.29–$2.30 zone, and if XRP can find fresh momentum beyond this level, it could target $2.60 and even retest its yearly high of $3.40.
Despite the bullish sentiment, some analysts are sounding the alarm.
For example, technical analyst Xanrox recently warned of a massive correction ahead. He pointed to a multi-year ascending triangle that has defined XRP’s price behavior since 2017.
Possible crash incoming for XRP | Source: TradingView
According to his analysis, XRP’s recent vertical rally created a large Fair Value Gap (FVG), which historically gets filled during steep market pullbacks.
If XRP follows its historical patterns, Xanrox expects that the cryptocurrency will decline towards the triangle’s lower trendline around $0.60 in a ~70% drop from current levels.
In addition, a descending triangle formation on the daily chart has started to take shape after XRP’s latest rally.
This bearish setup could push the token down to around $1.14, which would mean a 50% correction from today’s prices.
While Xanrox paints a bearish picture, not everyone agrees. Some analysts still believe that XRP is still bullish based on alternative technical indicators.
For example, Mikybull Crypto believes that there is a symmetrical triangle forming on the charts, which means that XRP could be looking at an upside target of $3.70 by September if momentum continues.
XForceGlobal has gone even further to predict XRP prices between $8 and $27, using Fibonacci retracement levels as a guide.
These mixed views show the uncertainty around XRP’s future.
While macro developments and investor sentiment are lining up in Ripple’s favor, the charts continue to show mixed signals.
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