XRP Price Action Tests Key Support Level, Will the Bulls Break the Descending Channel Pattern?

XRP price continued to fall on June 26th, erasing its tiny June 25th gains, even as Ripple added some bullishsignals for the token.

XRP price erased a small bounce on June 25th and continued to fall on June 26th despite Ripple adding some bullish signals for the coin. A positive sign for XRP is that Ripple received approval from the Dubai Financial Services Authority (DFSA) for use in the Dubai International Financial Center (DIFC). This milestone adds XRP to the list of digital assets approved by the DFSA within the DIFC’s regulatory framework, alongside Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC). As the first external virtual asset to receive regulatory approval within the DIFC framework, XRP’s approval marks a critical step for its global adoption. Furthermore, this development provides XRP with the legal clarity it needs to operate in one of the most important financial centers in the Middle East. Dubai has been a pioneer in the regulation of virtual assets, establishing a robust framework to ensure investor protection and promote innovation in financial services. Notably, the approval comes even as the Ripple SEC lawsuit continues. On-chain indicators are also showing a bullish outlook for XRP. According to CryptoQuant, XRP reserves on the Binance exchange have experienced a significant drop . Exchange reserves fell to approximately 2.7 billion XRP as of June 25, down from more than 3 billion in early April. This reduction typically indicates that investors are moving their holdings into private storage, thereby reducing the instant supply ​​available for trading and implying confidence in the future value of the asset. Additionally, Santiment’s distribution data for XRP holders shows increasing accumulation between mid-level levels and smaller large holders, adding a bullish signal for the coin. The share of wallets holding between 1 million and 10 million XRP has risen to 15.37%. Additionally, wallets holding between 10 million and 100 million XRP now account for 10.91% of the total supply. This trend indicates growing interest and confidence among these holder groups, suggesting that XRP price may come under upward pressure. Additionally, the wallets with the largest holdings (those holding over 1 billion XRP) decreasedholdings, suggesting a reallocation rather than an outright sale. Another bullish signal for XRP price comes as the coin tests descending channel pattern support. A rebound from here could see XRP price rise by around 91.5% towards channel resistance near $0.513. Currently, XRP price is facing bearish pressure, with the coin falling 1.6% on June 26, hitting a daily low near $0.47. However, bulls regained some ground , indicating buying pressure near channel support. If the bullish signal attracts more buyers, XRP price may rise towards resistance near $0.48. A break above this resistance would allow XRP bulls to target the next level of resistance near $0.5. On the other hand, a break below the channel could force XRP price to test support near $0.46 and $0.45 before rebounding. Meanwhile, XRP’s RSI remains neutral with a score of 38.35.

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