Ripple (XRP) is down by 1.5% on Tuesday, hovering below $1.13 as the token continued to struggle against broader bearish market sentiment despite a significant regulatory milestone in Europe.
The payments company announced that it has received authorization as a Crypto Asset Service Provider (CASP) from Luxembourg’s financial regulator, strengthening its position within the European digital asset market.
However, the positive regulatory development has done little to revive demand for XRP, with derivatives data showing retail traders continue to reduce their exposure.
Ripple receives full MiCA authorization
Ripple announced on Monday that it had obtained a CASP license from Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF).
The approval follows preliminary authorization granted in June 2026 and confirms Ripple’s compliance with the Markets in Crypto-Assets (MiCA) framework.
With the license in place, Ripple can now offer its regulated crypto payments infrastructure to financial institutions, corporations, and enterprise customers across the 30-country European Economic Area (EEA).
Commenting on the milestone, Cassie Craddock, Ripple’s Managing Director for the United Kingdom and Europe, said the authorization positions the company to expand its services throughout the region as the MiCA regulatory framework enters full implementation.
Despite Ripple’s regulatory progress, investor participation in XRP derivatives continues to weaken.
According to CoinGlass, XRP futures Open Interest (OI) declined to approximately $2.37 billion on Tuesday, down from $2.39 billion on Monday and $2.6 billion on Sunday.
The sustained decline suggests retail traders are reducing leveraged exposure, limiting the buying pressure needed to support a stronger recovery.
Without renewed participation, XRP could continue to struggle in the near term as investors prioritize short-term profit-taking over long-term positioning.
Ripple price forecast: XRP remains below major resistance
XRP’s short-term rebound remains fragile within a broader bearish channel.
Currently, XRP is trading below its 100-day EMA at $1.28 and 200-day EMA at $1.50. Remaining below these moving averages suggests sellers continue to dominate the longer-term trend.
Technical indicators show the recent rebound is beginning to lose momentum.
The Relative Strength Index (RSI) has retreated toward 48, indicating bullish momentum is fading after the latest recovery attempt.
Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains slightly positive but continues to flatten, suggesting buying momentum is weakening rather than accelerating.
If buyers regain momentum, XRP will need to overcome several important resistance levels.
The first major resistance at $1.28 could pave the way for XRP to rally towards the 200-day EMA at $1.50.
A sustained move above the channel and the 50-day EMA would be the first indication that bearish momentum is easing.
On the downside, traders are monitoring the major support level at $1.02.
A break below $1.02 could accelerate selling pressure and expose the next major support around $0.84.
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