- XRP trades at $2.1394 as Ripple receives Luxembourg E-Money Institution license approval, following recent UK FCA authorization.
- XRP ETFs attracted $10.6 million in net inflows while open interest declined 1.47% to $4.07 billion, showing mixed positioning.
- Price consolidates below all major EMAs inside descending channel, with Supertrend support at $1.9555 marking critical floor.
XRP price today trades near $2.1394 following Ripple’s announcement that it received preliminary approval for an Electronic Money Institution license from Luxembourg’s financial regulator. The regulatory milestone comes as spot XRP ETFs attracted $10.6 million in net inflows, but declining open interest and volume signal traders remain cautious despite positive fundamental developments.
Ripple announced Wednesday it received preliminary approval for an EMI license from Luxembourg’s financial regulator, a key step toward full regulatory clearance in the European Union. The approval follows Ripple’s recent success obtaining EMI authorization from the U.K.’s Financial Conduct Authority.
Ripple President Monica Long stated that “the EU was amongst the first major jurisdictions to introduce comprehensive digital assets regulation, which provides the certainty financial institutions need to move blockchain from pilots to commercial scale.” She added that the company is “managing the end-to-end flow of value” as it seeks to modernize cross-border payments.
The Luxembourg approval represents strategic positioning within the EU’s regulatory framework. With both UK and Luxembourg authorizations secured, Ripple can operate payment services across major European markets under comprehensive licensing that institutional clients require for blockchain adoption.
ETF Inflows Show Demand Despite Price Weakness
Spot XRP ETFs added approximately $10.6 million in net inflows, joining other tokens that posted gains despite uneven price performance. Solana ETFs saw larger inflows of roughly $23.6 million, while Bitcoin spot ETFs attracted $843.6 million on January 14, marking their largest daily inflow in several months.
The XRP ETF inflows provide fundamental support, showing institutional demand persists despite XRP trading below all major moving averages. However, the relatively modest $10.6 million compared to Bitcoin’s $843.6 million highlights that XRP remains a secondary consideration for institutional capital allocation.
Open Interest Declines As Volume Collapses
XRP Derivatives Analysis (Source: Coinglass)Futures data reveals declining conviction despite regulatory news. Open interest dropped 1.47 percent to $4.07 billion, while volume collapsed 24.16 percent to $5.88 billion. The combination of falling open interest and declining volume typically signals traders are closing positions rather than establishing new directional bets.
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Options volume declined 11.02 percent to $4.27 million, but options open interest climbed 3.71 percent to $72.08 million. The divergence suggests some traders are using options for hedging rather than directional speculation.
Long/short ratios show mixed positioning. The 24-hour aggregate sits at 0.9631, slightly favoring shorts. However, Binance account ratios show 2.8402 favoring longs, while top trader positions read 1.8819. The disconnect between aggregate positioning and account-level ratios suggests retail leans bullish while professional flow remains more balanced.
Descending Channel Dominates Technical Structure
XRP Price Dynamics (Source: TradingView)The daily chart shows XRP trapped inside a descending channel that has guided price lower since July highs above $3.60. Price trades below all major exponential moving averages, creating a bearish technical structure despite fundamental developments.
Key levels show:
- 20-day EMA: $2.0699
- 50-day EMA: $2.0781
- 100-day EMA: $2.2070
- 200-day EMA: $2.3265
- Supertrend: $1.9555
XRP sits just above the 20 and 50-day EMAs at $2.0699-$2.0781, which have provided support during the recent consolidation. However, the 100 and 200-day EMAs at $2.2070 and $2.3265 create a thick resistance zone overhead.
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The Supertrend indicator at $1.9555 marks the critical floor. As long as XRP holds above this level, the structure remains neutral rather than fully bearish. Losing Supertrend support would flip the indicator and likely trigger a move toward the $1.80-$1.70 demand zone.
Short Term Consolidation Below Parabolic SAR
XRP 30-Min Chart (Source: TradingView)The 30-minute timeframe shows XRP consolidating just above the Parabolic SAR at $2.0966 after pulling back from recent attempts at $2.18-$2.20. The RSI reads 47.55, neutral to slightly bearish after cooling from elevated levels.
Price is testing support at the SAR, which has provided a floor during the recent weakness. Holding this level keeps the consolidation intact, while losing it would expose the 20-day EMA at $2.0699 and confirm short-term momentum has shifted bearish.
Volume during the consolidation has been declining, showing neither aggressive buying nor panic selling. The regulatory news and ETF inflows have not translated into conviction moves, suggesting traders are waiting for stronger catalysts or clearer technical signals before committing capital.
Outlook: Will XRP Go Up?
The fundamental backdrop improves with the Luxembourg license and ETF inflows, but technical weakness and declining derivatives activity temper bullish conviction. If XRP reclaims $2.15 and breaks above the 100-day EMA at $2.2070, the structure shifts bullish. That would target the 200-day EMA at $2.3265, with further upside toward $2.50 if momentum builds.
If price loses $2.0699 and breaks below the 20-day EMA, the consolidation resolves bearish. That exposes Supertrend support at $1.9555, with deeper correction toward $1.80-$1.70 if selling accelerates and the descending channel breakdown confirms.
Reclaiming $2.15 validates regulatory momentum. Losing $2.0699 confirms distribution continues.
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Source: https://coinedition.com/xrp-price-prediction-luxembourg-license-and-10-6m-etf-inflows-meet-falling-open-interest/
