XRP Market Cap Plummets as Traders React to ETF Launch
The cryptocurrency market witnessed a significant shift as XRP’s market capitalization experienced a steep decline. Over the past 24 hours, XRP’s market cap dropped from $150.38 billion to $137.39 billion, corresponding to a 9% decrease in its price, bringing it down to $2.27.
XRP’s Sudden Market Reversal
This downturn occurred shortly after the debut of the first U.S. spot XRP ETF on Nasdaq. Many market participants had anticipated that this launch would extend the ongoing rally. However, the market reaction deviated from expectations, with traders capitalizing on the classic “sell-the-news” strategy. Following weeks of anticipation and strategic pre-launch positioning, the market responded by securing profits as soon as the ETF went live.
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Whale Activity Intensifies XRP’s Decline
Adding to the downward momentum, large XRP holders, known as whales, significantly contributed to the sell-off. Over the past month, these whales offloaded 1.4 billion XRP, exerting substantial selling pressure and causing a sharp retreat from Thursday’s peak of $2.52. This combination of profit-taking, heightened expectations, and whale-driven distribution led to a rapid pullback into the $2.20–$2.30 range.
Compounding the situation, this event coincided with a broader market downturn, resulting in the disappearance of approximately $200 billion from the global cryptocurrency market cap within the same 24-hour period. Despite this context, the ETF launch’s impact remains notable for its swift reversal in sentiment.
ETF Performance Shows Encouraging Signs
Contrary to the price decline, the ETF’s metrics reveal a robust foundation. Canary Capital’s spot XRP ETF (XRPC) recorded an impressive $58.5 million in trading volume on its opening day and $245 million in net inflows. These figures rank it among the most successful crypto ETF launches to date, highlighting significant early institutional interest and a strong demand for regulated XRP exposure.
Key XRP Support and Resistance Levels
Currently, XRP is maintaining support at the $2.20 level, which has historically cushioned previous market corrections. A breach below this threshold could pave the way for a decline towards $2. Conversely, a recovery above $2.35 could indicate stabilization following the recent downturn.
If ETF inflows continue to be strong throughout the week, the recent selling pressure might be short-lived. However, if inflows weaken, the market may extend its consolidation phase.
