In a move that underscores Asia-Pacific’s pivotal role in crypto’s future, Ripple secured an expanded Major Payment Institution (MPI) license from Singapore’s Monetary Authority (MAS) on December 1, 2025. This regulatory green light grants Ripple the authority to scale a broader suite of regulated payment services in a key financial hub, explicitly enhancing the utility of XRP and its stablecoin, RLUSD, for cross-border transactions. Yet, in a classic case of “buy the rumor, sell the news”, XRP’s price defied the bullish headlines, dropping approximately 6.7% to trade near $2.04 in the immediate aftermath. This disconnect between a clear fundamental win and short-term price action frames the critical question for XRP’s price prediction: is this a temporary shake-out or a sign of deeper issues?
The Significance of Singapore’s Stamp of Approval
Singapore is not just another market for Ripple; it’s the home of its Asia-Pacific headquarters and a jurisdiction celebrated for its forward-thinking yet clear regulatory framework. The expanded MPI license is more than a permit—it’s a powerful endorsement. It allows Ripple to offer institutional clients, including banks and fintechs, regulated access to token-based settlement using XRP and RLUSD without the need for those clients to build complex blockchain infrastructure themselves. This dramatically lowers the barrier to institutional adoption.
Ripple President Monica Long emphasized that “innovation thrives when rules are clear,” highlighting how this development strengthens Ripple’s ability to serve the Asia-Pacific region, where on-chain activity has surged roughly 70% year-over-year. For long-term XRP price predictions, this is a cornerstone development. It transitions XRP’s value narrative from speculative trading to tangible, regulated utility in one of the world’s fastest-growing digital asset corridors.
Why the Price Fell: Market Mechanics Meet Macro Headwinds
The immediate sell-off, which saw a significant drop in XRP futures open interest, reveals a market grappling with competing forces. First, the announcement likely triggered profit-taking from traders who had positioned for the news. Second, and perhaps more critically, XRP is not trading in a vacuum. The broader cryptocurrency market has faced significant stress, with major assets like Bitcoin and Ethereum under pressure. In such a risk-off environment, even positive project-specific news can be overwhelmed by macro-driven selling.
Furthermore, on-chain data presents a mixed picture. While some analysts point to substantial XRP outflows from exchanges—a sign of accumulation and reduced immediate selling pressure—others note that long-term holders have been distributing some of their holdings. This creates a tug-of-war beneath the price surface, explaining the heightened volatility and fragile recovery attempts.
Realistic Trajectories: Mapping the Path for XRP
Extreme price predictions, such as claims of XRP reaching $50 in the near term, are mathematically and economically detached from reality, requiring a market capitalization that would rival global stock markets. Serious analysis focuses on more grounded, yet still optimistic, scenarios. The immediate technical battle is centered on a key demand zone between $1.95 and $2.05. Holding this support is crucial to prevent a deeper retest of November lows near $1.77.
The bullish case for December and early 2026 hinges on two interconnected factors: overcoming overhead resistance and sustaining institutional demand. Analysts identify a major supply cluster and resistance level around $2.45 to $2.46. A decisive breakout above this zone could pave the way for a rally toward the $2.60-$2.65 area, which aligns with several technical targets. The primary catalyst for such a move would be the sustained inflow of institutional capital, most visibly through U.S. spot XRP ETFs, which have already attracted over $640 million in their first month. The sustainability of these flows, against the backdrop of the new Singaporean utility, will be the ultimate test of strength.
The Verdict: A Foundation for Growth, No a Guarantee
The expanded Singapore license is undeniably a fundamental victory for Ripple and XRP, cementing its role in the future of regulated, institutional crypto payments. However, the initial price drop is a stark reminder that in the short term, crypto markets are driven by liquidity, sentiment, and broader macro trends. For investors, the current moment presents a nuanced landscape. The long-term utility narrative has undeniably strengthened, but near-term price action remains tethered to Bitcoin’s momentum and the market’s appetite for risk.
Consequently, traders should watch two confluence points: XRP’s ability to defend the $2.00 support region and the broader market’s stability. The path to higher prices will require XRP to decouple from general market weakness and prove that its newfound regulatory clarity in Asia can directly translate into sustained buying pressure and a successful technical breakout.
