XRP price fell 3.8% to $1.09 on June 23, trading below the key $1.12 support level, despite Ripple securing a Crypto Asset Service Provider license in Luxembourg. The license, granted ahead of the July 1 MiCA compliance deadline, opens access to the European Economic Area, which saw $420 billion in crypto trading volumes in 2025 according to Kaiko Research. However, the broader market downturn, with Bitcoin dropping to $62,000 and triggering $100 billion in liquidations, dragged XRP down alongside other altcoins.
Bearish Technical Signals Mount
XRP had held the $1.12 support for two weeks, bouncing each time it was tested, but the latest breakdown invalidates a previously identified ascending triangle pattern that could have triggered a 17% rally. The next support lies at $1.05, the June 6 low, with a breach below that opening the door to the psychological $1 level. The Awesome Oscillator shows red bars increasing in negative territory, and the MACD line remains below the signal line, both indicating growing bearish momentum. $1.12 now acts as resistance.
Derivatives Data Shows Aggressive Shorting
Coinglass data reveals $8.83 million in long liquidations over 24 hours, adding sell-side pressure. Open interest fell 5.41% to $2.57 billion, while the long/short ratio dropped to 0.89, its lowest in two weeks, signaling that short sellers dominate. The ratio has stayed below 1 for nine consecutive days, suggesting entrenched bearish sentiment but also raising the possibility of a short squeeze if prices reverse unexpectedly.
Institutional Flows Offer a Contrast
Despite retail bearishness, spot XRP ETFs saw $7.8 million in inflows over the past two days, while Bitcoin ETFs experienced $158 million in outflows. This rotation of institutional capital toward Ripple hints that some large investors see the current dip as an entry point, even as short-term technicals remain bleak. Ripple joins Circle as a MiCA-compliant firm, while Tether has exited Europe and Binance faces compliance hurdles.