XRP Price Falls Below Key Support Despite Ripple’s Luxembourg License Win

Ripple’s XRP continued its downward trend on June 23, falling 3.8% to trade at $1.09 despite a major regulatory milestone that strengthens the company’s position in Europe. The decline highlights the broader weakness across the cryptocurrency market, with investors remaining cautious even after Ripple secured a Crypto Asset Service Provider (CASP) license in Luxembourg.

The newly acquired license allows Ripple to expand its services across the European Economic Area (EEA) ahead of the Markets in Crypto-Assets (MiCA) regulatory deadline on July 1. Europe’s crypto market generated approximately $420 billion in trading volume during 2025, making the region a significant growth opportunity for Ripple and XRP adoption.

However, positive regulatory developments failed to boost XRP price. Instead, the token followed the broader crypto market downturn as Bitcoin slipped to $62,000, triggering widespread liquidations and weakening investor sentiment.

From a technical perspective, XRP has broken below the critical $1.12 support level that had held firm since early June. The breakdown invalidates a previously bullish ascending triangle setup that had suggested the possibility of a 17% rally. With buyers showing reduced confidence at this key level, traders are now watching the next support zone near $1.05. A further decline below that area could expose XRP to a test of the psychologically important $1 mark.

Momentum indicators also point to growing bearish pressure. The Awesome Oscillator remains in negative territory with expanding red bars, while the MACD continues to trade below its signal line, reinforcing the current downtrend.

Meanwhile, XRP derivatives data suggests that bearish sentiment is strengthening. According to Coinglass, long liquidations reached $8.83 million over the past 24 hours, contributing to increased selling pressure. Open interest dropped 5.41% to $2.57 billion, while the long/short ratio fell to 0.89, indicating that short positions now outweigh long positions.

Despite the bearish outlook, institutional interest remains notable. Spot XRP ETFs attracted approximately $7.8 million in inflows over the last two days, even as Bitcoin ETFs recorded $158 million in outflows. This suggests some institutional investors may still view XRP as an attractive opportunity.

While short sellers currently dominate market sentiment, the persistent imbalance between long and short positions could increase the likelihood of a short squeeze if XRP experiences an unexpected price rebound in the coming days.