XRP Tanks, Ripple Gets EU Crypto License Approval under MiCA
XRP price tanked 5%% to $1.10 on Tuesday, closely tracking a broad crypto market sell-off primarily driven by a major leverage flush and institutional capital withdrawal. The drop was part of a broader crypto sell-off where over $580 million in long positions were liquidated in 24 hours.
Also, U.S. spot Bitcoin ETFs saw their sixth consecutive week of outflows, removing a key layer of institutional buying support. Open interest for XRP has fallen significantly, reducing support for leveraged buying and leaving spot markets vulnerable.
Technically, price was rejected at the $1.16 resistance and broke below the 78.6% Fibonacci retracement level near $1.118. The sell-off was amplified by a lack of defensive positioning and the breach of key technical levels, triggering automated selling.
The immediate catalyst is whether the broader market stabilises. XRP has seen seven straight weeks of ETF inflows, providing an underlying demand floor, but this has been overwhelmed by macro selling.
The trend is bearish below $1.14–$1.17 resistance, but the $1.05–$1.10 zone is critical support. A hold here could lead to consolidation; a break lower would signal renewed downside momentum.
Meanwhile, Ripple has received a preliminary Crypto Asset Service Provider license in Luxembourg, documented as a CSSF “Green Light Letter” issued under the EU’s Markets in Crypto Assets (MiCA) framework.
Under MiCA, a CASP license granted in one member state can be “passported,” allowing the firm to serve clients across all 30 countries in the European Economic Area once all conditions are satisfied.
Coverage of the preliminary CASP license in Luxembourg notes that Ripple must still meet final requirements before it can fully roll out services under this passport.
Ripple already holds an EU Electronic Money Institution (EMI) license from Luxembourg, and pairing this with a CASP license would enable European banks, fintechs, and corporates to access fiat and crypto payment rails through a single regulated integration.
Being among roughly a couple of hundred MiCA-compliant firms gives Ripple a competitive edge, as many EU crypto businesses are still racing to obtain licenses.
This strengthens Ripple’s pitch as a compliant backbone for institutional crypto payments in Europe, even if it does not automatically reprice XRP.
The Green Light Letter is conditional, so Ripple must complete remaining administrative and compliance steps before CSSF grants full authorisation and EEA passporting rights. XRP Price Increases as Ripple Seeks to Expand AI Workforce
