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.

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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.

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FAQs

Why is XRP going down today?

XRP is falling today because the entire crypto market is correcting, with Bitcoin’s sharp drop dragging altcoins lower despite the new ETF launch.

Did the XRP ETF debut fail to boost the price?

No. The ETF launch saw strong volume, but inflows were too small compared to XRP’s large market cap to move the price immediately.

When will the XRP ETF start creating real buying pressure?

Significant impact may come later as Canary Capital begins purchasing XRP to back the ETF, which can tighten supply over time.

Why do major crypto ETFs often fail to move prices instantly?

ETF launches usually see delayed effects. Institutional buying ramps up gradually, meaning price reactions often come days or weeks later.