New on-chain data reveals a significant institutional interest in XRP, with 803.78 million XRP now locked in various XRP Exchange Traded Funds (ETFs). This notable development was brought to light by Arthur, a prominent XRP community member and on-chain analyst, in a recent tweet. According to data from XRP Insights, a substantial amount of XRP is held within ETFs from several issuers, including Canary, Bitwise, Franklin Templeton, Grayscale, 21Shares, REX-Osprey, and the Bitwise 10 Crypto Index Fund.

Despite this increasing trend of institutional flows into XRP, its market price has not yet reflected this momentum, currently stabilizing slightly above the $2 mark. Arthur emphasized that while retail traders exhibit hesitation, institutional investments are telling a distinctly different story. This is evidenced by a net inflow of 22.63 million XRP in the past week alone, with every major issuer actively increasing their positions. The consistent absorption of millions of tokens daily by these ETFs strongly suggests that a major repricing of XRP could be imminent.

In terms of price action, XRP experienced a notable decline, dropping from a high of $2.41 on January 6 to a low of $2.03 by January 12. An attempt at recovery saw a sharp rebound to $2.183 on January 13, but this upward trend was short-lived as XRP began to decline again after reaching $2.19 on January 14. As of now, XRP is in its fifth consecutive day of decline since that date, trading down 0.19% in the last 24 hours at $2.05, and showing a 1.74% weekly decrease. Technical analysis on the hourly chart indicates a 'death cross,' where the one-hour MA 50 has fallen below the MA 200, signaling bearish sentiment. XRP is currently facing a critical test to confirm support around the $2 level, an outcome that will be closely monitored by market participants. The next significant resistance target for XRP is identified at $2.56, which aligns with the daily MA 200.

Adding to the positive long-term outlook, Ripple has secured preliminary authorization for an e-money license in Luxembourg. This license is a crucial step that will enable Ripple to expand its regulated digital-asset payment services across the entire European Union. Furthermore, Ripple is actively pursuing a Crypto-Asset Service Provider (CASP) license under the EU’s comprehensive Markets in Crypto-Assets (MiCA) framework, underscoring its commitment to regulatory compliance and expansion within the European market.