XRP price drops 3% despite Ripple license approvals as bitcoin influences market
Despite gaining preliminary authorization for an e-money license in Luxembourg, Ripple faces a 2.3% decline in XRP value to $2.12 due to buyers struggling to breach the $2.17 resistance level. This setback occurs even as Ripple moves closer to expanding its regulated payments services across Europe. The e-money license in Luxembourg presents an opportunity for Ripple to provide payment services involving stablecoins and other digital assets throughout the EU under a consolidated regulatory framework.
Ripple is also pushing for a Crypto Asset Service Provider (CASP) license under the EU’s Markets in Crypto-Assets (MiCA) regime to align its operations with the bloc’s latest digital-asset regulations. These progressive regulatory strides come at a time of heightened institutional activity in XRP trading. Exchange-traded funds for XRP have recorded net inflows of approximately $4.9 million over the last 24 hours, amounting to cumulative inflows of around $1.37 billion. Concurrently, the balance of XRP on exchanges has plummeted to less than 2 billion tokens, down from over 4 billion tokens towards the end of 2025. Traders typically interpret decreasing exchange supply as a positive mid-term factor even in the face of short-term price fluctuations.
Despite these positive developments, XRP encountered difficulties extending its recent rally and dropped from $2.17 to $2.12 within a 24-hour period, creating a narrow $0.07 range as momentum waned close to resistance levels. A pronounced V-shaped movement during U.S. hours prompted a surge in volume, peaking at nearly 140 million tokens around 14:00 and 15:00, representing a 133% increase over the 24-hour average. However, this push to reclaim the $2.17 threshold failed to sustain follow-through, leading to a decline in price as participation diminished. Notably, the retracement stayed above the $2.02 Fibonacci level and short-term moving averages, maintaining the broader consolidation structure established since the token pulled back from the $2.40 region earlier this month.
Although XRP fell from $2.17 to $2.12, marking a 2.3% decrease for the day, heavy volume accompanied a failed attempt to push higher. Despite this, price consolidation occurred between approximately $2.13 and $2.15 post-reversal, with crucial support levels near $2.02 and the psychological $2.00 mark remaining intact. Additionally, as long as XRP holds above the $2.00-$2.02 range, the overall structure appears constructive, signifying consolidation rather than a trend failure. A clean break above $2.22 could shift momentum towards $2.40, while dropping below $2.00 might trigger a deeper pullback towards $1.90-$1.80. Presently, the market balances improving regulatory and institutional signals against short-term technical fatigue, resulting in XRP remaining range-bound until new impetus drives resolution.
