XRP Price Prediction Amid Ripple’s Major Win in $420B European Crypto Market

XRP price is down 3.8% today, June 23, to trade at $1.09 at the time of writing, despite Ripple securing a license in Luxembourg that will open up access to the European crypto market.

XRP now trades below the crucial support level of $1.12, with the long/short ratio dropping to the lowest level in two weeks as short sellers bet that the current downtrend will continue.

Ripple Fails to Gain Despite Major European License

XRP price dropped from $1.13 to $1.09 on June 23 despite Ripple announcing that it has received a Crypto Asset Service Provider (CASP) license in Luxembourg ahead of the July 1 deadline for MiCA compliance.

This license will enable Ripple to expand its crypto access to the European Economic Area that had $420 billion in crypto trading volumes in 2025, per a report by Kaiko Research.

However, XRP price did not move up, and instead succumbed to the bearish moves in the broader market as Bitcoin price dropped to $62,000 and caused $100 billion in crypto liquidations.

Ripple joins Circle in the list of crypto firms that will not be pushed out of Europe after the MiCA deadline after Tether exited and Binance faces issues in becoming MiCA compliant.

XRP Price Drops Below Key Support Level

A previous CoinGape XRP price analysis had identified an ascending triangle pattern that could have triggered a 17%, but dropping below the support level of $1.12 has invalidated that bullish outlook.

XRP price has held this support level for two straight weeks since June 7. The price bounced whenever it touched this support, suggesting buyers viewed $1.12 as a good entry point, but the latest drop shows they are becoming hesitant.

The next support level now lies at the June 6 low of $1.05, with a move below it set to push bears to test the psychological support of $1.

The AO bars that are red and growing in length on the negative side also show that the bears are tightening their grip on XRP price, making the move towards $1 likely to occur.

The MACD line that is also below the signal line, paints the same bearish picture, with $1.12 now serving as an obstacle level.

While this technical outlook might deter retail traders, the $7.8 million inflows to spot XRP ETFs in the last two days, where Bitcoin ETFs had $158 million outflows, suggest institutional capital is rotating towards Ripple.

XRP Derivatives Market Analysis as Short Positions Surge

XRP has recorded $8.83 million in long liquidations in 24 hours per Coinglass, a move that has increased sell-side pressure around the token.

These long liquidations and the ongoing drop in price have pushed the open interest to $2.57 billion, a 5.41% decline in 24 hours.

Short sellers have also increased their bets that XRP price is going to drop further, with the long/short ratio dropping to 0.89, suggesting that there are more short positions than long positions.

The long/short ratio has remained below 1 for nine straight days, and while this shows that the sentiment towards XRP is bearish, it also makes a short squeeze likely to happen if the price makes an unexpected rise.