Core Viewpoint - XRP has experienced a pullback to $2.07, driven by profit-taking near the $2.13 resistance level, despite ongoing institutional demand indicated by ETF inflows and decreasing exchange balances [1][2][3] Regulatory Developments - Ripple has received preliminary authorization for an e-money license in Luxembourg, enabling expansion of regulated digital-asset payment services across the EU [2] - The company is also pursuing a CASP license under the EU's MiCA framework, positioning the XRP ecosystem for compliance within the new regulatory environment [2] Institutional Interest - Institutional interest in XRP remains strong, with cumulative net allocations to spot XRP ETFs reaching approximately $1.26 billion and no recorded outflow days [3] - The supply of XRP held on exchanges has decreased to below 2 billion tokens, down from over 4 billion in late 2025, indicating reduced immediate sell-side liquidity [3] Technical Analysis - XRP declined by 3.7% over a 24-hour period, falling from $2.149 to $2.070, with significant selling pressure near the $2.13 resistance level [5][9] - The trading volume spiked to 102.7 million tokens during the U.S. session, approximately 133% above the 24-hour average, leading to a rejection of price near $2.131 [5] - A late-session flush saw XRP drop to $2.059, followed by a rebound to $2.07, but the overall market structure remains heavy below $2.13 [6][9] Market Sentiment - The current market sentiment is characterized as a "sell-the-rally" environment, with short-term traders taking profits near the $2.13 level [8] - As long as the $2.13 resistance holds, XRP's price is expected to remain range-bound rather than trending higher [8]