Quick overview

Live XRP/USD Chart

---

XRP faced significant pressure on Friday, reaching its lowest point since November 10 after experiencing four consecutive days of decline. Despite the launch of the first spot XRP ETF, the sell-off continued unabated. The price of XRP has dropped nearly 40% from its peak this year and remains entrenched in a deep bear market.

This decline coincided with the Securities and Exchange Commission’s (SEC) approval of the Canary XRP ETF (XRPC), which had a successful debut with first-day trading volume exceeding $58 million.

Additionally, Wall Street’s interest in the fourth-largest cryptocurrency has attracted substantial investments, and many more XRP ETFs are expected to be launched on the DTCC platform in the coming weeks. This includes offerings from firms such as 21Shares, Franklin Templeton, Invesco, and Bitwise.

Several factors have contributed to the volatility in XRP’s price. The recent downturn reflects a broader crash in the cryptocurrency market, significant declines for Bitcoin, and most altcoins. In the last day, Ethereum dropped 10% to $3,125, while Bitcoin’s price fell to $97,200. Other popular tokens, including Cardano (ADA), Dogecoin (DOGE), Solana (SOL), and Binance Coin (BNB), have also suffered.

Overall, investors have lost more than $1 trillion this year as the total market capitalization of all cryptocurrencies declined by more than 5.4% in the past day,  down to $3.26 trillion.

This atmosphere of fear is affecting XRP’s price as well. Data shows that the Crypto Fear and Greed Index has fallen to the fear zone at 22 points. Additionally, the futures market reflects this fearful sentiment, with XRP’s open interest in futures contracts dropping from over $10 billion earlier this year to $3.65 billion. This decline suggests that investors are using less leverage when wagering on the coin.