Why is XRP Price Down Today? The Real Reason Behind the Drop Despite the XRP ETF Launch
The post Why is XRP Price Down Today? The Real Reason Behind the Drop Despite the XRP ETF Launch appeared first on Coinpedia Fintech News
The launch of the first spot XRP ETF was expected to bring a strong boost to the market, but instead, XRP has slipped into another round of losses. The token fell more than 7% in a single day, dropping from the $2.50 zone and sliding toward $2.20 as broader market pressure continues to weigh down sentiment.
For many holders, the big question is simple, why is XRP falling even after such a historic launch?
Unexpected XRP ETF Debut
Crypto analyst Nick Crypto Crusader explained that the price drop has less to do with XRP and more to do with the overall market. Bitcoin is still selling off sharply, pulling down most altcoins with it. During such periods, even positive news struggles to lift prices.
Still, the debut of Canary Capital’s spot XRP ETF (XRPC) shocked many analysts. The fund opened with over $58 million in first-day trading volume, the strongest ETF launch of the year.
Senior ETF analysts had expected around $17 million, yet that estimate was crushed within the first 30 minutes of trading.
Crusader noted that while the inflows were impressive, they remain small compared to XRP’s massive market cap. It will take far larger inflows to influence spot prices meaningfully.
- Also Read :
- XRP Price News: Canary Capital CEO Reveals When XRP Will Hit $10
- ,
Real ETF Buying Hasn’t Started Yet
Another key point he highlighted is that ETF launches rarely show instant price reactions. Even Bitcoin dipped in January 2024 when its spot ETFs went live. The bigger moves came later, once institutional buying settled in.
Crusader also added that Canary Capital still needs a few days to purchase the XRP required to back the ETF.
This means the real buying pressure from the fund hasn’t even started yet, something that could reduce supply once inflows scale up.
XRP Faces Major Breakdown Warning
XRP tried to push higher above $2.50, but, much like Bitcoin and Ethereum, it couldn’t maintain the momentum. The price quickly reversed and fell below $2.30, dropping nearly 9% as the entire market turned red.
Meanwhile, trader ChartNerd noted that XRP recently broke down from a descending triangle, losing the $2.70 support in late October. This move pushed the token into the $2.00–$2.20 support zone.
For XRP to recover, it must break above $2.40. If it fails, the price could slide again, with key support levels at $1.80 and $1.50.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
Subscribe to News
FAQs
XRP is falling today because the entire crypto market is correcting, with Bitcoin’s sharp drop dragging altcoins lower despite the new ETF launch.
No. The ETF launch saw strong volume, but inflows were too small compared to XRP’s large market cap to move the price immediately.
Significant impact may come later as Canary Capital begins purchasing XRP to back the ETF, which can tighten supply over time.
ETF launches usually see delayed effects. Institutional buying ramps up gradually, meaning price reactions often come days or weeks later.
You May Also Like
Trump’s Hormuz Ultimatum Sends Oil Past $110, Highest Since March
Foreigner’s Lou Gramm Revisits The Band’s Classic ‘4’ Album, Now Reissued
