XRP traded near $1.11 on Tuesday, hovering at the lower end of its three-week range as traders focused on the critical $1.05 to $1.10 support zone. The token slipped along with the broader crypto market, despite Ripple securing preliminary regulatory approval in Luxembourg under the European Union's MiCA framework. This approval allows Ripple to offer regulated crypto services across the bloc, but it has not yet translated into price support for XRP.
Data from CoinDesk shows XRP fell to $1.1109 from $1.1313 over the past 24 hours, with sell volume reaching 65.4 million XRP on June 22—84% above the average. The token's weakness comes as bitcoin and ether also declined, with bitcoin slipping to $62,471 and ether trading near $1,659. A Nasdaq-driven selloff knocked bitcoin toward $62,300 and sent ether down over 4%, with losses spreading across altcoins including Solana.
Technical Outlook Points to Key Levels
Chart analysis suggests the $1.05-$1.10 band is pivotal for XRP's next directional move. A break below this support could open the door to a decline toward $1.00, while a bounce might target $1.18 as an initial hurdle before a potential move to $1.20-$1.30. However, traders are also watching for a more significant relief rally that could push prices toward $1.40, based on historical patterns following previous death crosses.
Cointelegraph reports that XRP's 20-week exponential moving average is about to cross below the 200-week average, a pattern known as a death cross. While typically bearish, previous instances of this crossover in XRP were followed by rebounds toward the longer-term average. A similar swing would target $1.39-$1.40, representing a potential 23%-25% gain from current levels near $1.13. Liquidation data from CoinGlass shows approximately $236.5 million in short liquidity near $1.37-$1.40, where short positions could be forced to unwind if prices rise.
Ripple's Regulatory Milestone
Ripple's preliminary approval as a CASP (Crypto Asset Service Provider) in Luxembourg marks a significant step under MiCA, allowing the company to offer regulated crypto services across the European Union once fully approved. Cassie Craddock, Ripple's UK and Europe managing director, noted that "MiCA has helped to unlock a new wave of institutional digital assets adoption" and that "financial market infrastructure is moving onchain." However, analysts caution that this license is tied to Ripple's payments infrastructure, not to changes in XRP holder rights, leaving the token subject to the same market dynamics as other major cryptocurrencies.
Mixed Sentiment and Institutional Interest
Despite the price weakness, institutional interest in XRP remains evident. XRP ETFs attracted $2.4 million in inflows on June 20, even as retail activity cooled and network usage declined. This divergence highlights a split between institutional buying and retail caution. Meanwhile, futures open interest rose to 2.38 billion tokens despite falling prices, a signal that the downtrend may persist. Marketwide liquidations reached $717 million as altcoins underperformed relative to bitcoin and ether.
Chris Weston, head of research at Pepperstone Group in Melbourne, described current markets as "far from dull," noting that former market leaders have lost momentum. MUFG currency strategist Lee Hardman pointed to higher U.S. yields as a headwind for risk assets, a factor that also weighs on cryptocurrencies. Coinpedia earlier warned that staying below the key $1.13 weekly level could send XRP toward $0.90-$1.00, with minor support near $1.08-$1.10.
