XRP Teeters at Dollar Support as Ripple’s European License and RLUSD Progress Fail to Arrest the Slide

XRP futures liquidations surge 832% as token hangs near $1. Ripple secures Luxembourg CASP approval, RLUSD supply tops Ethereum, ETF inflows hit $1.47B.

A brutal week for XRP futures has left the token clinging to the psychologically critical $1 mark, even as Ripple locks down regulatory approvals and crosses new milestones for its stablecoin. Long-position liquidations on the derivatives market surged 832% over the past seven days, while open interest shrank from $1.18 billion to $1.04 billion — a clear signal that leveraged bulls are capitulating.

The cash-and-carry exodus has pulled XRP’s spot price to $1.04, nudging just above last Wednesday’s 52-week low of $1.01. Since the start of the year, the cryptocurrency has shed roughly 44% of its value, trading 71% below the $3.65 peak reached in July 2025.

Luxembourg Green Light Breaks Regulatory Ground

Against this somber market backdrop, Ripple secured a provisional Crypto Asset Service Provider (CASP) approval from Luxembourg’s financial regulator, the CSSF, on 23 June. The so-called “Green Light Letter” paves the way for the company to offer regulated services across all 30 countries of the European Economic Area. The move builds on an e-money license obtained in February 2026, giving Ripple a two-pronged regulatory foundation ahead of the full enforcement of the Markets in Crypto-Assets (MiCA) framework on 1 July.

Matthew Osborne, Ripple’s head of regulatory affairs for the UK and Europe, described Luxembourg as a natural home for the firm’s European activities. Still, the approval remains provisional pending final checks on capital adequacy, governance, and operational readiness for custody and payment services.

RLUSD Overtakes Ethereum, Gains Japan Recognition

Ripple’s native stablecoin, RLUSD, is meanwhile gaining real traction. Its circulating supply now stands at $1.6 billion, and for the first time the volume locked on the XRP Ledger has surpassed that on Ethereum — $810 million versus $760 million. This shift reflects the ecosystem’s deliberate push to keep transactions on its own network rather than relying on a competitor’s blockchain.

Regulatory tailwinds extend beyond Europe. Japan’s financial watchdog has officially recognised RLUSD as a payment method, and SBI VC Trade — a major domestic exchange — is preparing to list the stablecoin. Such moves bolster Ripple’s footprint across Asia and could eventually feed broader demand for XRP as a settlement asset.

Institutional ETF Interest Picks Up, but Price Lags

Parallel to the liquidation bloodbath, institutional money is trickling into XRP exchange-traded products. The week ending 28 June saw net inflows of $22.99 million — the highest weekly total in six weeks. A single day, 26 June, accounted for $15.63 million of that sum, with Bitwise’s product alone pulling in $11.66 million. Cumulative inflows into XRP investment vehicles since November 2025 have now reached a record $1.47 billion.

Yet none of that capital is showing up in the spot price. The token’s relative strength index (RSI) sits at 32, just above the classic oversold threshold, and chartists see near-term support near the $1.00 handle. Some technicians are flagging potential buy signals that could spark a bounce toward $1.30, but the broader 30-day decline of 21% suggests the downtrend remains firmly entrenched.

Tokenisation Push Aims to Narrow the Gap

On the development front, Ripple is rolling out so-called Multi-Purpose Tokens designed to keep transaction details and balances private through cryptographic proofs — a feature banks have long demanded. The aim is to win a slice of the tokenised real-world assets market, where competitor Stellar currently oversees roughly $3 billion in value. Ripple’s ledger holds just $330 million, a gap it hopes to narrow with these confidentiality-focused instruments.

CLARITY Act Hopes Dim in Washington

Across the Atlantic, the regulatory picture is less encouraging. The CLARITY Act, a bill that would classify XRP as a digital commodity, is losing momentum. Prediction markets now peg its passage probability at just 42%, with bank lobbying expected to stall progress ahead of Congress’s summer recess. That uncertainty compounds the pressure on a market already digesting an 832% spike in forced liquidations.

The 1 July MiCA enforcement date will serve as the next major test of whether Ripple’s European licence advantage can translate into sustained price momentum — or whether the token will first test the waters below the dollar.