XRP’s MiCA Regulatory Win Was Just a Profit-Taking Trigger—Here’s the Real Price Action Breakdown

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(SeaPRwire) –   By: Christian Pierce

The past week has been a brutal reversal for XRP holders. Ripple secured preliminary EU MiCA approval, a major regulatory win. But the token dropped 15% from its June 16 peak near $1.29. By June 24, XRP traded at around $1.057. Traders used the regulatory news to take profits, not push prices higher. Bitcoin also weighed in, briefly falling below $62,000. Elevated interest rates and capital rotation to AI and semiconductor stocks limited crypto inflows this quarter.

Let’s break down the hard data and technical signals. The 4-hour chart shows a falling wedge pattern since the June 16 high. Price hit the lower boundary near $1.08, a Fibonacci support zone. 4-hour MACD stays below zero, signaling short-term seller control. But the histogram has flattened, suggesting downside momentum is slowing. Chaikin Money Flow sits at -0.13, showing capital is still leaving the market. CryptoQuant’s June 22 data shows the Binance XRP Scarcity Index dropped to 0.34, a three-month low. That’s down from 0.80 in April and May, meaning more supply is available on the exchange. CoinGlass data notes a large liquidation cluster between $1.13 and $1.15. In 24 hours, $13.53 million in XRP derivatives were liquidated, 96% from long positions. Binance led with $7.59 million in liquidations, followed by Bybit at $2.57 million. Well-known analyst Altcoin Sherpa posted on X that XRP’s chart looks poor across all time frames, and could drop to $0.75.

The commercial loop here is straightforward. Traders locked in gains after the MiCA news, even as the broader crypto market weakened. The rising Binance supply means there’s more selling pressure waiting in the wings, unless demand spikes quickly. If buyers hold support at $1.08, the liquidation cluster near $1.13 could force short positions to cover, pushing prices higher. A break below $1.08 would put $1.05 and then $1.00 in focus as next support levels. For active traders, the key watch level is $1.08; a breakout above the wedge’s upper trendline could target $1.13, $1.16, and $1.19.

Author bio: Christian Pierce, a chief financial columnist and markets commentator focused on digital asset and equity trading trends.