The US Federal Reserve Has Withdrawn Crypto Guidance for US Banks, a Move That Could Benefit Ripple's RLUSD Stablecoin and XRP Price

XRP value today trades at $2.19 with a 2.7% decline in 24 hours. This altcoin is experiencing choppy price movements after the recent rally stalled once the altcoin hit the $2.30 barrier.

The US Federal Reserve has withdrawn guidance to US banks on crypto and USD-backed stablecoins, which could be good news for the adoption of Ripple’s RLUSD stablecoin and XRP price.

If US banks begin adopting US-made stablecoins like RLUSD, then there is a good chance that XRP price could go higher from here. But could it really reach $10?

The World Bank Commences New Integration Finance Initiative

The Board of Governors of the Federal Reserve has decided not to expect notification from banks prior to engaging in crypto-asset activities. Instead, the Board will monitor banks’ crypto-asset activities through the normal supervisory process, it was announced on Wednesday.

This comes as the US Congress is working on legislation to create a federal framework for the issuance of stablecoins.

Earlier this year, the Fed provided guidance to national banks and federal savings associations on engaging in activities related to crypto-assets, advising them to notify the Board in advance. However, the Board has now decided to withdraw that guidance and will monitor such activities through the usual supervisory procedures.

This development could have significant implications for the adoption of stablecoins in the US.

Good News For RLUSD And XRP Price

This move by the Fed could bode well for the adoption of RLUSD stablecoin and, in turn, for the XRP price.

Recently, there has been a surge in trading volume of RLUSD, the liquid US-issued stablecoin on the RippleNet network, with a 45% spike.

The increased volume in RLUSD trades signals growing interest and activity in this specific stablecoin among traders. This optimism stems from the belief that the new Fed policy will facilitate faster adoption of US-issued stablecoins.

As the adoption of RLUSD increases, it will benefit the XRP price and place it in a strong position to hit one of its targets this year.

One of the levels that XRP price could reach with the new narrative is $10. Analyst BarriC is bullish on XRP and predicts that it could hit $10 by the end of 2025 as US banks and institutions begin adopting Ripple.

Other bullish catalysts that could propel XRP to $10 include ‘massive' inflows to spot XRP ETFs, according to JPMorgan analysts.

Technical Analysis Of XRP Price

The weekly chart of XRP shows that the altcoin has entered a demand zone. This is a price level where buying activity was previously concentrated, which may support a bounce if sellers take profits after the recent upswing.

If XRP bounces from this demand zone, the immediate target for the price lies at the $2.72 resistance. If this altcoin can flip this resistance, it will kickstart an uptrend past $3, paving the way for this altcoin to record an all-time high. However, the bullish thesis will be invalid if XRP falls below the support level of $1.90.

The Relative Strength Index (RSI) has bounced off 50, which indicates that bullish momentum is returning and a rally is likely. If the RSI continues to rise above 50, it will signal a strong bullish comeback that might propel the XRP price to $2.72.

However, the RSI line is still oscillating below the 9-period SMA, which implies that buyers have not yet taken complete control of the price action and Ripple might continue to consolidate.

At the same time, the Average Directional Index (ADX) is decreasing despite remaining above the zero line, which indicates that the bullish momentum is becoming weaker. This further suggests that Ripple might oscillate within the demand zone until a surge in buying pressure triggers a strong move.

To sum up, the recent change in guidance by the Federal Reserve suggests that the RLUSD stablecoin might see increased adoption, which can help support an XRP price rally to $10.

At the time of writing, XRP value today trades at $2.19 with a 2.7% decline in 24 hours. This altcoin is experiencing choppy price movements after the recent rally stalled once the altcoin hit the $2.30 barrier.