XRP Trades at $2.07 as Whale Activity Drops to Seven-Month Low Despite European Expansion

Regulatory Progress in Europe

Ripple Labs has begun the new year with significant regulatory advancements across Europe. The company behind XRP received provisional approval for an electronic money institution (EMI) license in Luxembourg, which could enable the firm to expand regulated payment services for digital assets throughout the European Union ^[1]. Additionally, Ripple's UK subsidiary, Ripple Markets UK, has already obtained regulatory approvals covering both e-money and crypto-asset activities ^[1]. These developments could potentially benefit both XRP and Ripple's stablecoin RLUSD going forward ^[1].

Price Action and Whale Activity

Despite these regulatory wins, XRP is currently trading at approximately $2.07, representing a decline of 1.45% over the past 24 hours and 2.65% over the past week ^[2]. However, the token remains up roughly 7% over the past month ^[2]. The market capitalization stands at around $125.38 billion ^[1].

Interestingly, the price decline comes alongside a notable decrease in whale activity on exchanges. Data from the XRP Ledger indicates that large holder transfers to exchanges have fallen to levels not observed since 2021 ^[2]. CryptoQuant analyst Arab Chain reported that the Whale Transfer Flow dropped to 48 million XRP before rising slightly to 56.1 million ^[2]. This metric is significant because large token movements to exchanges typically signal preparation for selling, which increases downward price pressure ^[2].

According to market analyst Santolita, whale inflows to Binance have dropped to their lowest level in seven months, suggesting that major holders are not rushing to sell their positions ^[2].

Technical Analysis

Over the past 24 hours, XRP has traded in a range between $2.0798 and $2.0263 ^[1]. The token is currently positioned slightly below its 20-period exponential moving average of $2.0780, which indicates a neutral to slightly bearish market stance ^[1].

Key support levels are identified at $2.055 and $2.032, while resistance levels sit at $2.078 (aligned with the EMA-20) and $2.100 ^[1]. The Relative Strength Index stands near 34.0, signaling weak momentum without reaching oversold conditions ^[1]. The price has been forming a series of higher lows since bottoming at $2.0325, suggesting a potential short-term recovery movement ^[1].

Bollinger Bands show an upper band at $2.1596 and lower band at $2.0169, with a width of approximately $0.1427, indicating moderate but not extreme volatility ^[1]. The market appears to be in a short-term consolidation phase with heightened tension at current support levels ^[1].

Market Context and Outlook

The broader cryptocurrency market has declined by 1.09% in the last 24 hours, bringing total market capitalization to $3.23 trillion ^[2]. Major cryptocurrencies including Bitcoin, Ethereum, and Solana are also trending downward, reflecting an overall bearish sentiment across the sector ^[2].

Analysts note that historically, periods of low whale activity have led to price rallies due to tighter supply and increased demand ^[2]. The reduced whale transfers could support a price rebound once market conditions stabilize and available supply on exchanges remains limited ^[2].

From a technical perspective, a sustained breakout above $2.078 could push the price toward $2.100 and potentially $2.278, while a break below $2.032 could trigger downward targets around $1.98 to $1.80 ^[1]. The current setup suggests XRP bulls are defending the $2.00 support level, and as long as the price remains above this zone, the broader bullish structure stays intact ^[2].