XRP, strengthening upward momentum amid expectations of Garinghouse policy implementation and the launch of deposit certificates

Technical Analysis: An Important Turning Point for the Wedge Pattern Approaches

XRP is currently experiencing an intriguing technical transition. After finding support at the lower boundary of the descending expanding wedge pattern at around $2.33 on Thursday, it is attempting to rebound toward the upper resistance at $2.72. This resistance is reinforced by the 50-day simple moving average and the 14-day exponential moving average, and whether it can be broken through is expected to be a key factor in determining the future direction.

Technical indicators are currently positioned below the neutral zone. The Relative Strength Index(RSI), Stochastic Oscillator, and MACD Histogram all suggest weak momentum, and a breakout above the neutral line could signal a positive shift. Conversely, if the support level at the bottom fails, further correction down to the $1.35 level cannot be ruled out. Currently, XRP is trading at $1.87, reflecting a 1.00% decline over the past 24 hours.

In the past 24 hours, the total liquidation volume in the futures market reached $17.32 million. Liquidations of long positions amounted to $8.58 million, and short positions to $8.74 million, indicating a balanced clearing environment on both sides.

Introduction of Depository Receipts Opens a New Gateway for Institutional Investors

Positive news released on Friday drove XRP’s price up by 4%. The Receipts Depository Corp and Digital Wealth Partners in the US announced plans to launch XRP Depository Receipts(Depository Receipt). This is modeled after the existing US Depository Receipt(ADR) system, designed to allow institutional investors exposure to price movements without directly holding actual XRP tokens.

The operation of depository receipts is similar to exchange-traded funds(ETF). Investors can gain actual ownership of the underlying assets through intermediary mechanisms while avoiding the hassle of direct purchase and custody. This structure lowers legal and administrative barriers for institutional capital to enter the cryptocurrency market.

Anchorage Digital, a provider of cryptocurrency custody services, will manage these depository receipts under the supervision of the US Office of the Comptroller of the Currency(OCC). This is interpreted as a signal to activate institutional investment based on the credibility of traditional finance.

Garinghouse Emerges as a Key Figure in White House Cryptocurrency Policy

There are also friendly moves within the political arena toward the XRP ecosystem. Garinghouse, CEO of Ripple(Ripple), is reportedly included in the shortlist for the White House Cryptocurrency Committee. This appears to follow an executive order signed by President Trump to promote digital assets and blockchain technology innovation.

Garinghouse’s involvement in policy indicates a clear departure from the previous administration’s regulation-centric approach. It is seen as a sign of a shift away from the long-standing industry complaints about “regulation-driven control,” toward a more innovation-friendly stance.

Additionally, Garinghouse has been listed as a participant in the CEO forum hosted by the Commodity Futures Trading Commission(CFTC). The forum will discuss a pilot program for digital asset markets involving tokenized collateral assets such as stablecoins, with major cryptocurrency firms including Circle, Coinbase, and Ripple expected to attend.

Outlook: Policy Favorability Meets Institutional Infrastructure

These three factors—potential breakthrough of technical resistance, the introduction of institution-friendly depository receipts, and influence through Garinghouse—positively shape XRP’s medium-term scenario.

If XRP can break through the upper resistance at $2.72 and turn it into support, the path toward the psychological resistance at $4.00 and the all-time high could open. This environment, where regulatory uncertainties are resolved and institutional capital can enter through institutional channels, appears increasingly plausible.

However, the weak momentum indicated by the indicators still does not send a strong buy signal. Until the RSI and MACD Histogram break above the neutral zone, a slight further correction should also be kept in mind.