XRP (CRYPTO: XRP) is up 3% over the past 24 hours as three catalysts are converging that could drive a 70% rally back toward July’s $3.65 peak.
Reason 1: Ripple Secures Luxembourg EMI License For EU Expansion
Ripple just got preliminary approval to operate as a licensed payment company across all 27 European Union countries.
Luxembourg’s financial watchdog, the Commission de Surveillance du Secteur Financier, issued a so-called “green light letter” Tuesday, effectively clearing Ripple to proceed with its final licensing steps.
This matters because it lets Ripple offer payment services using XRP and stablecoins to banks and financial institutions throughout Europe.
The company already secured similar approval in the UK last year, so now it can legally operate in both major European markets.
Ripple has already processed over $95 billion in payment volume and holds more than 75 licenses across different countries.
The EU approval opens up a massive new market for XRP-based payments, as European banks can now use Ripple’s infrastructure without regulatory risk.
Additionally, Ripple President Monica Long noted the EU was first to create clear crypto rules, which makes it easier for traditional banks to actually use blockchain technology instead of just testing it in pilot programs.
Reason 2: Senate Bill Gives XRP Bitcoin-Like Regulatory Status
The Senate Banking Committee released a draft bill Tuesday that would treat XRP the same way regulators treat Bitcoin (CRYPTO: BTC)—as a commodity, not a security.
The draft defines tokens as “non-ancillary assets” if they were the principal asset of an ETF listed on a national securities exchange as of January 1.
XRP qualifies based on ETFs already trading on major exchanges.
This means XRP escapes SEC securities rules and doesn’t need to file the same disclosures other crypto projects do.
The Senate Banking Committee votes Thursday. If it passes, the regulatory overhang that’s weighed on XRP for years disappears entirely, opening the door for more institutional adoption.
Reason 3: ETFs Show $1.25B Accumulation Despite Price Weakness
XRP spot ETFs recorded $12.98 million in daily inflows Tuesday.
Cumulative ETF inflows hit $1.25 billion with total net assets reaching $1.54 billion, representing 1.19% of XRP’s entire market cap.
The massive inflows this week occurred right around the $2-$2.2 zone, suggesting institutions are accumulating on weakness.
XRP Compressed In Range After 41% Crash
Price Prediction of XRP By TradingView
XRP crashed 41% from July’s $3.65 peak to December’s $1.80 low and has spent past few weeks consolidating between $2-$2.5.
XRP attempted to break out last week, pushing to $2.5 before getting rejected. That level now acts as the key battleground—reclaiming it would signal the downtrend is broken and open the door to $2.7-$2.8, then $3.
The setup is straightforward: if XRP breaks above $2.5, the path to $3.2-$3.4 opens quickly.
That represents a 50-60% move from current levels. Pushing back toward the July high at $3.65 would be a 70% rally.
Support sits at $2.06. Losing $2 breaks the structure and targets $1.9-$1.95, then the December low at $1.8.
Image: Shutterstock
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