XRP Price Falls 6% as WisdomTree Exits XRP ETF Race

Key Insights:

• XRP price has plunged more than 6% to $2.24 over the last 24 hours.
• WisdomTree files with the U.S. SEC to withdraw its spot XRP ETF filing.
• XRP price fell amid liquidations on major exchanges, especially Binance.
• Spot XRP ETF inflows streak continues amid outflows from Bitcoin ETFs.

XRP price fell more than 6% in the last 24 hours after WisdomTree unexpectedly pulled out of the spot XRP ETF competition.

The asset manager filed with the U.S. Securities and Exchange Commission (SEC) to pull its S-1 registration for the WisdomTree XRP ETF.

XRP Price Drops After WisdomTree Withdraws Its ETF Application

According to a filing with the U.S. SEC, WisdomTree asked the SEC to withdraw its registration statement on Form S-1. The firm said it decided not to move forward at this time.

The request also covered the removal of all exhibits and changes related to the original filing from December 2, 2024. The WisdomTree XRP Fund trust was still in early review and had not received approval.

It confirmed that the trust has not sold any shares under the registration, seeking withdrawal under Rule 477 of Regulation C under the Securities Act of 1933.

While no explicit reasons were provided, analysts speculate that it stems from strategic considerations amid intensifying competition in the XRP ETF space.

This triggered a further selloff in XRP price. At the time of writing, XRP price was trading at more than 6% lower at $2.24.

The decline wiped out recent gains and pushed XRP below the key support level of $2.30. XRP is now trading under the 50-day moving average on short-term charts.

XRP Price Slump amid Rising Liquidations on Binance

The XRP price drop happened alongside a wave of liquidations on major exchanges, especially Binance, which caused many XRP futures positions to be wiped out.

CryptoQuant data indicates a brutal session where both long and short positions were hammered. Binance dominated these liquidations, following a short squeeze after heavy long-position wipeouts.

Forced selling near $2.40 increased the downward pressure on XRP. More liquidations led to heavy profit-taking, pushing Ripple coin price below $2.24.

Binance remains the main player in XRP derivatives, leading in both trading volume and liquidations. These waves of liquidations often cause sharp price swings, especially when traders on both sides are trapped.

Adding to the bearish sentiment, on-chain metrics reveal persistent selling from large holders. The XRP Whale Flow 30-DMA remains firmly in negative territory, signaling ongoing distribution by whales.

While selling pressure has eased, it still hovers around -$30 million per day.

XRP ETF Market Remains Robust

Despite WisdomTree’s exit, the overall XRP ETF market remains robust. US spot XRP ETFs recorded more than $1.25 billion in total inflows, according to SoSoValue data.

On Tuesday, spot XRP ETFs posted $19.12 million in net inflows. That extended the ongoing inflow run and pushed total net assets to $1.62 billion.

Franklin’s XRPZ reported $7.35 million in inflows, leading among other ETFs. Canary’s XRPC  saw $6.49 million in inflows and Bitwise’s XRP recorded $3.54 million.

The inflows are driven by regulatory clarity from the Ripple-SEC settlement and progress on the CLARITY Act. Also, Ripple’s announcement on its Gtreasury acquiring Solvexia held up positive momentum.

Crypto analyst CrediBULL Crypto noted a “textbook triple tap setup” on XRP’s 4-hour chart, suggesting potential for a local rebound to $2.30 despite the broader correction.

Analyst Crypto Tony added that if bulls can hold the $2.20 level. The price would keep upside momentum intact, but traders need to keep an eye on Bitcoin.

Looking ahead, XRP’s trajectory in 2026 hinges on several factors. Bullish drivers include sustained ETF inflows, institutional adoption via the XRP Ledger’s low-cost, and Ripple-related developments.