Even European Regulatory Approval Had No Effect...XRP (Ripple) Stalls at $1.17 Amid Declining Retail Investor Demand

▲ XRP/ChatGPT Generated Image

Although Ripple passed the European regulatory hurdle, XRP failed to break its downward trend. Open interest in the perpetual futures market decreased from $2.58 billion to $2.38 billion, highlighting a slowdown in retail investor demand.

According to crypto media outlet FXStreet on July 7 (local time), Ripple received approval for a Crypto Asset Service Provider (CASP) license from the Luxembourg financial regulator, Commission de Surveillance du Secteur Financier (CSSF). Following preliminary approval in June, it is now fully compliant with the European Union's Markets in Crypto-Assets (MiCA) regulation. Ripple's regulated crypto payment services can now be offered to financial institutions and businesses in 30 countries within the European Economic Area.

Cassie Craddock, Ripple's Managing Director for UK & Europe, stated, "This CASP approval means that Ripple is now fully compliant with regulatory frameworks and ready to expand its business in the post-MiCA era." However, in the XRP market, the weakening of retail investor demand was more pronounced than the effect of regulatory approval.

According to CoinGlass data, XRP perpetual futures open interest decreased from $2.58 billion on Sunday to $2.39 billion on Monday. It further declined to $2.38 billion on Tuesday. Compared to the peak open interest of $10.94 billion, investment activity has significantly contracted.

Technical trends also leaned bearish. XRP remained within a downward parallel channel, with the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) preventing an upward movement. The Relative Strength Index (RSI) dropped to the mid-40s, and the Moving Average Convergence Divergence (MACD) histogram remained slightly positive but was flattening. FXStreet analyzed that the recent rebound's momentum is weakening.

The upper resistance level is $1.17, and the 50-day EMA is $1.18. The 100-day and 200-day EMAs are located at $1.28 and $1.50, respectively. On the downside, the Parabolic SAR at $1.02 and the bottom of the downward channel at $0.84 were presented as key levels.

[Article Summary]

-XRP perpetual futures open interest decreased from $2.58 billion to $2.38 billion.

-Ripple secured a CASP license in Luxembourg, laying the groundwork for business expansion in 30 countries within the European Economic Area.

-XRP's main resistance level is $1.17, with downside levels suggested at $1.02 and $0.84.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*