What to Know:
- XRP experienced a significant intraday decline, breaking through the $2.30 support level.
- The launch of the first U.S. spot XRP ETF, Canary Capital’s XRPC, coincided with this market downturn.
- Traders should monitor key support levels and ETF inflows for potential recovery signals.
The price of XRP experienced a sharp decline, despite the milestone launch of the first U.S. spot XRP ETF. The selloff erased recent gains, highlighting the cryptocurrency’s vulnerability amid broader market uncertainty. Investors are closely watching key support levels and institutional activity to gauge the potential for a rebound.
The launch of Canary Capital’s XRPC on Nasdaq, while a positive step for institutional access to XRP, occurred as crypto markets faced a medium-term downtrend. Analysts suggest that current market conditions resemble a short-term rebound within a larger decline, leaving the market structure susceptible to deeper retracements. This caution is echoed by large-cap token flows, adding to the uncertainty surrounding XRP’s near-term prospects.
Technical analysis indicates a full breakdown, with former support levels now acting as resistance. The failure to hold the $2.29 level could expose XRP to further downside risk, potentially leading to a move into the $2.00–$2.20 demand zone. Reclaiming $2.36 is essential for bulls to regain technical control and signal a potential trend reversal.
Traders should closely monitor ETF inflows to determine whether institutions view the listing as an accumulation opportunity or a liquidity event. On-chain data, particularly the 110.5M XRP whale transfers, remains a wildcard that could introduce additional downside risk if these tokens flow into exchanges. Sentiment across major cryptocurrencies remains fragile, and XRP, being beta-sensitive, is likely to react disproportionately to broader market weakness.
In conclusion, the recent price action in XRP underscores the importance of vigilance and strategic risk management. While the launch of an XRP ETF is a step forward, broader market conditions and technical indicators suggest caution. Monitoring key levels and institutional activity will be crucial for navigating the current market environment.
Source: Original article
