coindesk.com
$XRP fell toward $2.07 as traders sold into strength near the $2.13 level, even as ETF inflows and falling exchange balances continue to point to steady institutional demand in the background.
News background
$XRP’s pullback comes against a backdrop of improving regulatory and institutional signals rather than any negative headline shock.
Ripple this week received preliminary authorization for an e-money license in Luxembourg, a move that would allow the company to expand regulated digital-asset payment services across the European Union. Ripple is also pursuing a CASP license under the EU’s MiCA framework, positioning the $XRP ecosystem to operate inside the bloc’s new regulatory regime.
Institutional interest has remained steady. Spot $XRP ETFs have continued to attract inflows, with cumulative net allocations now around $1.26 billion and no recorded outflow days. At the same time, exchange-held $XRP supply has fallen below 2 billion tokens, down sharply from more than 4 billion in late 2025, a dynamic traders often read as reduced immediate sell-side liquidity.
Despite those longer-term positives, near-term price action has been driven almost entirely by technical positioning and profit-taking following $XRP’s rally from the $1.80 area earlier this month.
Technical analysis
$XRP declined 3.7% over the 24-hour period, sliding from $2.149 to $2.070 as sellers repeatedly defended resistance near $2.13. The token traded within a $0.10 range, marking roughly 4.7% intraday volatility.
The key inflection came during the U.S. session, when volume spiked to 102.7 million tokens at 15:00 — roughly 133% above the 24-hour average — as price was rejected near $2.131. That rejection set off a sequence of lower highs and lower lows, confirming short-term bearish control.
Selling pressure intensified into the evening before a brief capitulation flush hit at 19:31. Volume jumped to 3.7 million in a single minute, driving $XRP down to $2.059. Buyers stepped in quickly at that level, triggering a rebound toward $2.07 into the close.
While the bounce eased immediate downside pressure, the broader structure remains heavy below $2.13, with rallies continuing to attract supply rather than follow-through buying.
Price action summary
- $XRP fell from $2.149 to $2.070 over 24 hours
- Heavy selling emerged near $2.13 on above-average volume
- A late-session flush to $2.059 triggered a modest rebound
- Price settled near $2.07, still below key resistance
What traders should know
This is a sell-the-rally tape, not a trend reversal.
ETF inflows and shrinking exchange balances continue to support the medium-term case for $XRP, but short-term traders are using strength near $2.13 to take profits. As long as that level caps upside, price is likely to remain range-bound rather than trend higher.
The levels are straightforward:
- If $2.05–$2.06 holds, $XRP can continue consolidating and potentially make another run at $2.13–$2.15.
- If $2.05 breaks, downside opens toward the $2.00 psychological level, where buyers are likely to defend more aggressively.
- A clean break above $2.13, backed by volume, is needed to shift momentum back toward $2.30–$2.40.
For now, $XRP is digesting its earlier rally — with institutions quietly accumulating in the background while short-term traders control day-to-day price action.