XRP Price Slips Even as Ripple Gains Regulatory Progress in Europe

This article was first published on The Bit Journal. The XRP price retreated toward the $2.07 level as traders sold into strength near $2.13, pausing the token’s recent rally despite continued signs of institutional demand building in the background.

The XRP price drop was not accompanied by any negative news, but rather a short-term profit-squeeze and technical positioning following the XRP growth out of the $1.80 range earlier this month. The participants of the market seemed to utilize the zone of 2.13 as a selling zone, which limited the upside depth, as even the long-term fundamentals are positive.

Regulatory Momentum Supports the XRP Price Outlook

At the basic level, Ripple enhanced its regulatory base in Europe. The firm was given initial approval of an e-money license in Luxembourg, which would enable it to scale up regulated services of digital-asset payments throughout the European Union. Ripple is also seeking a Crypto-Asset Service Provider (CASP) license under the Markets in Crypto-Assets (MiCA) framework of the EU, which puts the XRP ecosystem in place to function in the new regulatory environment of the bloc.

These have contributed to the overall XRP price forecast, despite the technicality that is dictating the near-term market dynamics.

ETF Inflows and Exchange Supply Trends

There has been institutional interest that has been constant. The inflows to spot XRP ETFs have been on the rise, and cumulative net allocations have topped at approximately $1.26 billion, with no recorded outflow days. Such constant demand has given the XRP price an underlying bid even in times of short-term weakness.

Meanwhile, the value of XRP stored on exchanges dropped to less than 2 billion tokens, significantly lower than the above 4 billion at the end of 2025. The traders tend to view a decrease in the exchange balances as low sell-side liquidity in the short term, which can serve the XRP price in the medium term.

Technical Selling Pressures the XRP Price

Nevertheless, regardless of those long-term positives, the immediate XRP price activity has been largely led by the technical positioning and profit-taking after the climb at the beginning of this month.

The XRP price went down 3.7% over the last 24 hours, falling between $2.149 to $2.070. The token was trading in a $0.10 range, which is about 4.7% intraday volatility with sellers defending resistance over and over again at $2.13.

The most notable inflection point was the U.S. session, where volume climbed to 102.7 million tokens at 15.00, approximately 133.5 percent above the 24-hour average, as the XRP price was repudiated around $2.131. The rejection caused a series of lower highs and lows, which proved the short-term bearish control.

The selling pressure was increased until the evening, when it culminated in a short capitulation attempt at 19:31. Within the same minute, the volume increased to 3.7 million tokens, which sent the XRP price to $2.059. Buyers intervened immediately once that level was reached and precipitated a recovery to close to $2.07.

Key Levels to Watch for the XRP Price

Even though the late-session bounce reduced the immediate pressure downwards, the overall framework is still heavy below $2.13, and rises in the XRP price are still getting supply and not long-term purchasing inclusion.

The major levels will be obvious: In case the XRP price sustains in the area of the support of $2.05-$2.06, further consolidation may be observed with another accent on $2.13-$2.15. A break of the 2.05 would result in the appearance of the downside risk towards the 2.00 psychological level, where the buyers are likely to defend the price more fiercely. To change the XRP price momentum towards the $2.30-$2.40 range, a clean break above $2.13 (with good volume) will be required.

In the meantime, the XRP rate is digesting its previous capital rally. Institutions are quietly amassing in the background, and the short-term traders are dominating day to day price action, keeping the market in a sell-the-rally mode and not a confirmed uptrend.

Conclusion

For now, XRP appears locked in a consolidation phase, balancing steady institutional accumulation against persistent short-term selling pressure. Regulatory gains and inflows of ETF may be behind the medium-term outlook, but traders are stuck on the key technical levels, and price action is range-bound until a decisive breakout appears.

Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!

Summary

• XRP dropped to $2.07 as traders made a profit around $2.13.
• The institutional demand is also robust, with ETF inflows and reduced exchange supply.
• Ripple advances EU regulation, gaining preliminary e-money approval and pursuing MiCA CASP license.
• Short-term momentum range-bound with resistance at level $2.13 and support at level $2.05- $2.00.

Glossary Of Key Terms

Resistance Level:  Price point where selling limits upward moves ($2.13).

Support Level:  Price point where buying prevents further drops ($2.05–$2.00).

ETF Inflows:  Money entering XRP-tracking funds, showing institutional demand.

Exchange Supply:  XRP held on exchanges, affecting liquidity.

Profit-Taking:  Selling to lock in gains after a rally.

Capitulation:  Sudden heavy selling, causing sharp drops.

MiCA Framework:  EU rules for crypto service providers.

CASP License:  EU license for legal crypto operations.

Frequently Asked Questions about XRP Price

1. Why did XRP price drop?

The XRP has dropped to $2.07 on the basis of profit taking around $2.13 even though there was a good institutional demand.

2. How do ETF inflows affect XRP?

The ETF inflows depict consistent institutional interest, which underlies the price perspective in the medium run.

3. What is Ripple’s regulatory progress in Europe?

Ripple got preliminary e-money approval in Luxembourg and is pursuing a MiCA CASP license.

4. What are key XRP price levels?

Support is $2.05–$2.00, resistance at $2.13; a breakout could push toward $2.30–$2.40.

Reference

Coinmarketcap

Read More: XRP Price Slips Even as Ripple Gains Regulatory Progress in Europe">XRP Price Slips Even as Ripple Gains Regulatory Progress in Europe