XRP Down 2% Since Ripple’s MiCA Approval, Leading to Claims of Inverse Price Impact

Despite confirmation that Ripple secured preliminary approval under Europe’s Markets in Crypto-Assets (MiCA) framework, XRP has continued to face selling pressure.

The crypto asset has declined 2.39% over the past week, and this has led to some market participants arguing that positive developments surrounding Ripple no longer translate into upward momentum for XRP.

Ripple Secures Preliminary MiCA Approval

For context, Ripple received a preliminary approval, known as a Green Light Letter, for a Crypto Asset Service Provider (CASP) license under the European Union’s MiCA framework from Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) on June 23, 2026. 

More licensing momentum!

Ripple has secured its preliminary Crypto Asset Service Provider (CASP) license in Luxembourg, paving the way for the full rollout of Ripple Payments across the EEA and full MiCA compliance: https://t.co/APQcYnCy9c

The next wave of regulated digital…

— Ripple (@Ripple) June 23, 2026

The approval arrived only days before MiCA’s crucial July 1, 2026, transitional deadline, after which crypto firms that operate without the required authorization could face compliance issues when offering certain services across the European Union.

The preliminary CASP license gives Ripple the ability to provide multiple crypto-related services, including crypto exchange, transfers, custody, and other associated activities for clients. 

The authorization also complements Ripple’s existing Electronic Money Institution (EMI) license, which the company also obtained in Luxembourg. 

However, the current approval remains preliminary and still depends on the fulfillment of final regulatory conditions. Once regulators grant full approval, Ripple would achieve complete MiCA compliance by combining both its CASP and EMI licenses. 

Ripple previously followed a similar two-stage process for its EMI authorization, obtaining a Green Light in January 2026 before later receiving full approval.

XRP Fails to Respond Positively to Bullish News

Although the announcement represented a major regulatory breakthrough for Ripple, XRP failed to benefit from the news. However, the token moved lower alongside the broader crypto market.

Within one hour of Ripple’s announcement, XRP dropped 1.13% to $1.09. The asset then traded sideways around the $1.09 level before staging a modest rebound to $1.11 by midday on June 23. This recovery was short-lived. Since reaching the $1.11 region, XRP has retreated again and now changes hands at $1.08.

Overall, XRP has declined 2.7% since Ripple announced the preliminary MiCA approval. The market reaction has led to speculation among some investors that major bullish developments surrounding Ripple may now produce little immediate benefit for XRP’s price performance and could even coincide with short-term weakness.

XRP Down This Year Despite Ripple’s Business and Regulatory Wins

The MiCA approval represents only one of several positive developments Ripple has recorded this year. Ripple also broadened the reach of its RLUSD stablecoin in June 2026 by partnering with BiLira, Bitexen, and Bitlo, making RLUSD available to institutional users in Türkiye. 

The stablecoin further expanded its presence through listings on major exchanges, including Gate.io. In addition, LMAX Group integrated RLUSD as collateral within its institutional trading infrastructure.

Meanwhile, Ripple continued its expansion strategy. The company invested in Flutterwave during its Series E funding round, which valued the African payments company at $3.2billion.

Despite Ripple’s expanding regulatory approvals, strategic partnerships, stablecoin growth, and institutional initiatives, XRP has not reflected the optimism surrounding these developments.

Instead, the asset has largely tracked the wider market’s bearish trajectory. XRP has fallen 40.3% since the beginning of the year and currently remains on course to record its weakest annual performance since the 2022 bear market.