Why is XRP’s recovery stalling as Ripple and Robinhood broaden their partnership?

• Selling pressure at $1.33 checks XRP’s advance as the approaching Fed interest rate decision poses headwinds.
• Through a broader Robinhood partnership, Ripple seeks to increase RLSUD stablecoin adoption while combining prime brokerage with treasury management.
• XRP’s technical outlook remains challenging as the 50-day EMA restricts the scope for a recovery.

With the 50-day EMA constraining recovery prospects, XRP has yet to overcome its technical challenges.
Short-term obstacles are threatening Ripple’s (XRP) recovery, with the remittance token trading around $1.33 on Wednesday. After rebounding for two days from its weekly low of $1.27, XRP is showing signs that the winning streak could end.

Market attention this week is centred on the Federal Reserve’s (Fed) forthcoming interest rate decision. Participants assign a 91% probability to the central bank leaving rates steady within the 3.75-4.00% range.

Clues to the future policy path are also likely to come from Fed Chair Kevin Warsh’s post-meeting press conference, which traders will watch alongside the rate announcement. Economists are already assigning a greater probability to a December rate increase, a prospect that could put risk assets under pressure.

In comments sent by email, CoinRoutes Co-founder and CEO Ian Weisberger said, “This is a nervy week for crypto. Traders face a Fed rate decision, results from the biggest tech companies in the world, and around $12 billion worth of Bitcoin bets expiring on Friday. Then the US midterms land next Tuesday.”

How will Robinhood broaden adoption of Ripple’s RLUSD stablecoin?

A single access point for infrastructure spanning stablecoins, institutional markets and treasury management is the aim of Ripple’s expanded partnership with financial services provider Robinhood. Ripple announced the broader arrangement on Tuesday.

Under the tie-up, Ripple USD (RLUSD) serves as the principal stablecoin throughout Robinhood’s digital asset ecosystem for both retail and institutional clients. Already available on Robinhood Chain and Bitstamp by Robinhood, RLUSD is also set for wider availability through the Robinhood app before year-end.

According to Ripple’s press release, “Robinhood will leverage RLUSD on the XRPL for institutional settlement, extending the stablecoin’s utility across Bitstamp by Robinhood’s growing institutional business,”

To enhance and automate global operations such as cash and liquidity management, Robinhood will use the XRP Ledger (XRPL) to integrate Ripple Treasury. Ripple Prim also forms part of the partnership, which builds on existing collaborations and market access.

RLUSD’s market capitalisation stands at $2.4 billion, while the wider stablecoin supply currently totals more than $300 million. Earlier this week, Ripple also said that its National Trust Bank had received final approval from the Office of the Comptroller of Currency (OCC).

Technical analysis: Can XRP overcome resistance as its recovery loses steam?

The bearish outlook continues to constrain XRP despite its modest two-day rebound from near $1.27 to around $1.33. The token trades just below the Bollinger Bands’ middle line near $1.33, with the 50-day Exponential Moving Average (EMA) around $1.36 also capping gains.

A test of the established descending resistance line is effectively under way, yet the inability to sustain a move above the mid-Bollinger band keeps the wider structure under pressure. This comes even as the Moving Average Convergence Divergence (MACD) inches into marginally positive territory. Meanwhile, a Relative Strength Index (RSI) reading near 46 points to momentum that is no stronger than neutral to soft.

Around $1.33, the Bollinger mid-line presents the first resistance, followed by expected selling pressure near the 50-period EMA at $1.36. Beyond that, the upper Bollinger band around $1.41 represents a firmer hurdle. If sellers deepen the pullback, the next significant support is at the lower Bollinger band, currently near $1.26, where a more distinct demand zone could develop.

(The technical analysis of this story was written with the help of an AI tool. Know more.)