XRP declines despite steady institutional demand
- XRP lags behind other crypto majors, declining for the second consecutive day on Thursday.
- Ripple secures preliminary approval for an Electronic Money Institution license from the CSSF, Luxembourg's financial regulator.
- The EMI license will scale Ripple Payments' infrastructure across Europe, support institutional clients and unlock dormant capital.
Ripple (XRP) is trading lower above support at $2.08 at the time of writing on Thursday, as the broader cryptocurrency market mildly pulls back following a bullish start of the week.
Despite a two-day correction in the price of XRP, market sentiment remains relatively positive, as reflected by steady inflows into spot Exchange Traded Funds (ETFs). As reported, US-listed XRP ETFs posted almost $11 million in inflows on Wednesday. The cumulative inflow stands at $1.26 billion, and the net assets at $1.56 billion, indicating steady investor confidence.
Ripple targets cross-border payments growth in Europe
Ripple announced on Wednesday that it has secured a preliminary approval for its Electronic Money Institution (EMI) license from Luxembourg's Commission de Surveillance du Secteur Financier (CSSF).
The EMI license marks a major step toward scaling cross-border transfers on the Ripple Payments infrastructure across Europe. Ripple believes that the approval will also boost support for institutional clients, ensuring seamless, real-time and 24/7 payments.
Monica Long, President at Ripple, commended the European Union's (EU) progressive approach to crypto regulation.
Long stated that “By extending Ripple’s licensing portfolio and evolving our payments solution, we are doing more than just moving money. We are managing the end-to-end flow of value to unlock trillions in dormant capital and moving legacy finance into a digital future.”
The CSSF approval follows the company's receipt of its EMI licence and Crypto Asset Registration from the United Kingdom’s (UK) Financial Conduct Authority (FCA) last week. In total, Ripple has received 75 regulatory licenses globally, enabling it to support institutions' and individuals' digital asset needs.
Technical outlook: Can XRP hold above key support?
XRP is trading above support provided by the 50-day Exponential Moving Average (EMA) at $2.08 at the time of writing on Thursday. The Relative Strength Index (RSI) has declined to 54 on the daily chart, indicating that bullish momentum is gradually fading.
An extended drop in the RSI below the midline would suggest the overall outlook has shifted from bullish to bearish, potentially accelerating losses below the pivotal $2.00 level. Beyond this area, XRP could target the January low of $1.82 and April’s low of $1.61.
Still, the Moving Average Convergence Divergence (MACD) indicator holds slightly above the red signal line, which may encourage investors to lean into risk, adding to buying pressure.
A decisive break above the 100-day EMA at $2.21 is needed to validate XRP’s short-term bullish turnaround. Traders will anticipate more resistance at the descending trendline and the 200-day EMA at $2.33.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
