XRP Drops 7% Amid Spot ETF Launch Reaction
- XRP drops 7% after the launch of the U.S. spot ETF.
- Increased volatility due to institutional activity.
- Potential for recovery if key levels hold.
XRP’s price fell 7% after Canary Capital launched the first U.S. spot XRP ETF, prompting mixed analyst reactions amid heightened market volatility.
The ETF debut showed substantial institutional interest, but also triggered a significant sell-off, reflecting macroeconomic challenges impacting Bitcoin BTC +0.36% , Ethereum ETH -0.42% , and other major cryptocurrencies.
XRP experienced a 7% decline following the launch of the first U.S. spot XRP ETF, impacting the market significantly by heightening volatility. Analysts report that this resembles familiar “sell the news” behavior observed in prior ETF introductions.
The first U.S. spot XRP ETF, issued by Canary Capital, reported day-one volumes over $58 million, signaling high institutional and retail interest. Key figures like Brad Garlinghouse and David Schwartz have not publicly commented on these immediate market changes.
Broader cryptocurrency markets, including Bitcoin and Ethereum, also felt the impact, reflecting a general macro-driven risk-off sentiment. Bitcoin experienced a near 9% weekly drop, while Ethereum saw significant declines, indicative of widespread market caution.
Analysts caution of potential deeper retracement in the short term, with on-chain activities revealing substantial XRP movement, possibly indicative of whale activity. This volatile phase is emblematic of macro factors steering investor sentiment.
Similar ETF introductions have historically elicited volatile reactions, often leading to profit-taking scenarios. Market conditions remain sensitive to broader economic trends, underscoring the precariousness of current market structures. As Alex Kuptsikevich, Analyst at FxPro, noted, “Crypto conditions still resemble ‘a short-term rebound within a larger decline,’ with market structure vulnerable to deeper retracements.”
Analytical insights suggest that XRP must hold above critical levels such as $2.29 for a potential reversal above $2.36, restoring a bullish market framework. The current absence of regulatory statements leaves speculative room within the crypto ecosystem.
