XRP Slides to $2.30 Despite Record-Breaking ETF Launch, Warning Signs Ahead?
XRP had a rough day of trading on Thursday, dropping 4.2% to trade above $2.30. This was despite the highly anticipated launch of the Canary
Quick overview
- XRP experienced a 4.2% drop to above $2.30 despite the successful launch of the Canary Capital XRP ETF, which achieved $46 million in trading volume on its debut.
- Analysts suggest that institutional excitement may have already been priced into XRP, leading to a 'sell-the-news' reaction following the ETF launch.
- Technical indicators show bearish signals for XRP, with critical support at $2.28 and resistance levels at $2.40 and $2.45.
- Future price predictions for XRP have become more cautious, with expectations of reaching $5 by the end of 2025, contingent on maintaining support levels.
XRP XRP/USD had a rough day of trading on Thursday, dropping 4.2% to trade above $2.30. This was despite the highly anticipated launch of the Canary Capital XRP ETF (XRPC), which had one of the best debut performances in crypto ETF history. Investors are wondering if XRP’s long-awaited ETF catalyst has already been priced in because of the difference between institutional excitement and rapid price response.
Spot XRP ETF Launch Exceeds Expectations with $46 Million Day-One Volume
The Canary Capital XRP ETF blew everyone away when it initially hit the market, trading $26 million in the first 30 minutes alone. By the middle of the afternoon, the fund had made more than $46 million in trades, making it one of the best ETF launches of 2025. Eric Balchunas, a senior analyst at Bloomberg ETF, talked about how well the fund was received. His colleague James Seyffart said that the fund was contending with Bitwise’s Solana ETF for the title of the year’s most successful crypto ETF debut.
According to forecasts from financial behemoth JPMorgan, an XRP ETF could bring in up to $8 billion in capital flows, which is why institutional demand has been building for months. After President Donald Trump was re-elected, the regulatory permission came. This was because he changed his mind about crypto policies, which made it more likely that spot crypto ETFs would be approved.
XRP/USD Technical Analysis: Bearish Triangle Formation
Even while institutions are making a big deal out of XRP, its price action paints a worrying technical tale. The token fell from an intraday high of over $2.50 to $2.28, which is below the important $2.40 barrier and the 100-hourly Simple Moving Average. Technical analysis shows that a short-term contracting triangle formation is building with resistance at $2.235. This means that the market may be consolidating before the next move in either direction.
The hourly MACD indicator is getting stronger in the negative zone, and the Relative Strength Index has fallen below the neutral 50 level. Both of these things show that bullish conviction is diminishing. XRP is currently trading at about $2.28, which is just over its 365-day moving average. This is a dynamic support level that could affect the token’s short-term direction.
Critical Support and Resistance Levels Define Trading Range
The first major barrier for XRP bulls is $2.40, and the next one is $2.45, which is the 76.4% Fibonacci retracement level of the latest drop. If prices break through $2.45, they could go up to $2.52 and maybe even $2.58. The main resistance level is at $2.65.
But if it doesn’t go back to $2.40, it might put further pressure on the downside. The first level of support is at $2.28, while the second level is at $2.25. A clear drop below $2.25 would probably speed up losses below $2.20 and maybe even $2.12, with the next major floor at $2.05.
XRP Price Prediction: Cautious Optimism Amid Near-Term Headwinds
Earlier predictions from analysts said that XRP could rise to $10 when the ETF was approved. More recent, more cautious predictions say that it will reach $5 by the end of 2025. The way prices are moving right now implies that the market may have already taken in a lot of the good news about the ETF. This led to a classic “sell-the-news” occurrence, where XRP and the XRPC fund both fell 2.7% and 8% on launch day.
XRP needs to get back into the $2.40-$2.45 zone and show that there is still buying demand for the bullish case to come back. Traders should keep a tight eye on the $2.25 support level until then. If it breaks below this level, it might mean that further declines are coming. If it holds, it could be the start of a new upward trend until the initial ETF launch volatility dies down.
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