XRP Slumps by 8% as ETF Launch Fails to Fuel Rally
With downbeat sentiment in the cryptocurrency market, the price of Ripple (XRP) tumbled by about 8% in the last 24 hours due to investors trimming their holdings.
XRP’s drop stems from macro liquidations overwhelming its exchange-traded fund (ETF) catalyst, which had earlier fuelled price appreciation, compounded by technical triggers.
XRP fell 8% in the past 24h, underperforming the broader crypto market, down by 6% due to a mix of technical breakdowns, market-wide liquidations, and profit-taking after its ETF launch.
Its price movement in the past 24 hours revealed that XRP broke below critical $2.35 support, triggering bearish momentum.
Ripple trades at $2.30 on $7.17 billion in trading volume at the press time. XRP market value has reduced below $140 billion as the fourth largest digital asset failed to maintain previous uptrend.
The surge in Ripple’s trading volume to about $7.2 billion signals panic selling rather than accumulation.
XRP faced amplified selling pressure as altcoins like SOL (-8.6%) and ADA (-8%) led declines. With 60.1 billion coins in circulation, XRP market capitalisation printed at $139.006 billion, approximately 4% weekly gain.
On Friday, over $1 billion crypto liquidations hit altcoins hardest. XRP ETF’s record $58 million debut failed to offset broader risk-off sentiment.
XRP ETF launch fails to sustain its momentum. Traders likely sold XRP positions to cover losses elsewhere, reflecting the “sell the news” pattern seen after SOL’s ETF launch.
Analysts said technical traders exited positions after the $2.35 support failed, while the network hiccup fuelled short-term uncertainty. The MACD histogram turning positive (+0.01003) suggests potential stabilization, but recovery needs a close above $2.38.
The ETF’s launch comes after Canary Capital completed its final SEC filing earlier this week, the last step before NASDAQ approval.
NASDAQ confirmed that the Canary Capital XRP fund meets all regulatory requirements, allowing it to start trading. The ETF will use the ticker XRPC and follow the XRP-USD CCIXber Reference Rate Index.
This setup lets investors gain exposure to XRP without buying the digital currency directly. Updated filings show that trading will begin right after certification.
With NASDAQ’s approval, Canary Capital became the first company in the U.S. to offer a spot-based XRP fund under the Securities Act of 1933. This gives it an edge over other funds that use derivatives or futures.
Other companies like Franklin Templeton, Bitwise, CoinShares, and 21Shares have also updated their XRP fund applications, showing that more ETFs may enter the market soon. Data from the Depository Trust & Clearing Corporation suggests these listings could happen shortly, giving investors more options. First Holdco Dips Below N1.3trn Amidst Huge Trading Volume
