The XRP price experienced a 4% decline recently, settling at 2.07 dollars after encountering a strong technical resistance level. As reported by Shaurya Malwa from CD Analytics, the digital asset faces profit-taking maneuvers by short-term retail traders in the current market. Nevertheless, this movement occurs while institutional demand remains extremely firm through regulated financial products during the current session.
Ripple has achieved a significant regulatory milestone by receiving authorization for an e-money license in Luxembourg. This move allows expanding digital payment services regulated throughout the European Union in an efficient way today. Likewise, the company is actively seeking the CASP license under the MiCA framework. The ecosystem positions itself within the regime of European regulation to ensure a legal and transparent operation in the bloc.
On the other hand, data from exchange-traded funds show a remarkable resilience in the face of volatility. XRP ETFs have attracted net inflows constantly, which already reach the cumulative figure of 1.26 billion dollars. Furthermore, the number of tokens available on exchanges has fallen below 2 billion units. This reduction in immediate sell-side liquidity is usually interpreted as a bullish signal for mid-term investors.
Will institutional accumulation be able to overcome technical selling pressure in the short term?
However, the current price action is dominated by specific technical levels and a cautious market psychology. Sellers successfully defended the key level of resistance located near 2.13 dollars during the United States session. Therefore, the asset recorded considerable intraday volatility that took the quote towards a temporary low of 2.05 dollars per unit.
Despite this adjustment, experts suggest that this is a consolidation phase after the previous rally. The market structure remains under bearish control momentarily as long as the price fails to break the 2.13 dollar barrier. So, traders must closely watch the psychological support of 2.00 dollars. In this way, the XRP price seeks to establish a solid base before attempting new yearly highs.
Will this pullback represent a buying opportunity for large capital holders?
Finally, the future prospects for the cryptocurrency depend on the interaction between institutional adoption and technical action. Buyers reacted quickly at low levels to drive a moderate rebound toward the end of the trading day. Likewise, if the 2.05 dollar support manages to stay stable, the asset could consolidate forces. A clean break above technical resistance would open the path toward 2.40 dollars in the coming weeks.
