XRP steadies despite Korea's BDACS and Japan's SBI Holdings initiatives set to boost adoption

• XRP retests the 200-period EMA, offering bulls short-term relief ahead of a potential breakout above $3.00.
• Korea's BDACS expands partnership with Ripple to offer institutional clients custody support for XRP.
• Japan's SBI Holdings files for XRP and Bitcoin ETFs with the FSA to provide investors seamless access to digital assets.

Ripple (XRP) price holds above a critical support at around $2.94 on Tuesday, underpinned by risk-off sentiment in the broader cryptocurrency market. Low trading volume, stubborn resistance levels and weak support suggest that last week's sell-off to $2.72 could resume.

However, institutional adoption in Asia and regulatory developments in the United States (US) could help buoy the cross-border money remittance token, aiming for a trend reversal above the $3.00 support-turned-resistance and later extend the uptrend toward its record high of $3.66.

Korea's BDACS adds custody support for XRP

BDACS, a leading regulated digital asset custodian in Korea built for institutions, has announced custody support for XRP. The launch builds on an already existing partnership with Ripple but also underscores BDACS's commitment to providing institutional-grade services in the Korean market.

"With our recent integrations into Korea's top exchanges, including Upbit, Coinone and Korbit, clients can now deploy XRP across the largest trading venues in Korea in a regulatory compliant way," BDACS said via an X post.

SBI Holdings files for XRP, Bitcoin ETFs

One of Japan's financial giants, SBI Holdings, has filed for two exchange-traded funds (ETFs) targeting Bitcoin and XRP with the Pacific nation's Financial Services Agency (FSA). The proposed financial products include a "Crypto-Asset ETF" and a "Digital Gold Crypto ETF". 

The Crypto-Asset ETF will mainly provide access to Bitcoin and XRP, with the Digital Gold Crypto ETF allocating over 50% of its assets to Gold and the rest to digital assets.

SBI Japan, a subsidiary of the company, has had a longstanding partnership with Ripple, including a stake in the blockchain startup. The partnership allows SBI Japan to tap into several flagship products, such as On-Demand Liquidity (ODL) and Ripple Payments, ensuring the transfer of value in key financial corridors.

If approved, the "Crypto-Asset ETF" will expand XRP's adoption in the Asian region, while also underscoring the FSA's gradual but steady shift toward ensuring wider cryptocurrency adoption and innovation. The FSA has historically taken a slow and cautious approach to regulating digital assets, emphasizing risk management and customer protection.

XRP shrugged off the institutional adoption news, hovering below resistance at $3.00 and support at $2.92.

Technical outlook: XRP eyes breakout above $3.00

XRP price holds above support provided by the 200-period Exponential Moving Average (EMA) at $2.92. A recovery appears elusive despite the institutional adoption initiatives above. 

Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) underline the short-term bearish outlook on the 4-hour chart. 

The RSI holds steady below the midline, suggesting that buying pressure is not strong enough to sustain the recovery. At the same time, a buy signal will be confirmed when the blue MACD line crosses and closes beneath the red signal. 

XRP/USDT 4-hour chart 

Still, the SuperTrend indicator, which recently offered a buy signal, shows that bulls have a chance to regain control of the trend and push for a breakout above $3.00. This trend-following tool serves as dynamic support or resistance. It utilises the Average True Range (ATR) to gauge volatility. As support, the SuperTrend line remains below the price of XRP, encouraging risk-on sentiment.