XRP price fell to $2 during a broader crypto sell-off, as leveraged positions unwound and traders treated anticipation of a new spot XRP ETF as a “sell-the-news” event, leaving the token at a key support and negative on the year despite ongoing progress at Ripple Labs.
Summary
- XRP price underperformed majors like ETH and BNB in a 12-hour market drawdown, sliding to a support level that has repeatedly held in past sell-offs.
- Analysts saw no clear trigger beyond over-leverage and ETF hype, echoing earlier post-launch dips after Canary Capital and Bitwise spot XRP ETFs.
- Four XRP ETFs have attracted strong inflows, but XRP’s price now trades below its 2025 opening value, diverging from Ripple Labs’ operational advances.
XRP’s price declined to $2 on Tuesday as the broader digital asset market experienced significant losses, with substantial capital exiting the space within a 12-hour period, according to market data.
XRP (XRP) sustained larger losses compared to other major cryptocurrencies, while Ethereum and Binance Coin recorded more moderate declines. The cross-border payment token reached a support level that has held during previous market sell-offs, exchange data showed.
Market analysts noted the absence of a clear catalyst for the decline beyond over-leveraged positions among market participants.
Analysts predict XRP has bottomed
The decline occurred as traders anticipated the launch of another spot XRP exchange-traded fund that will track the CME CF XRP-Dollar Reference Rate. Market observers have characterized the movement as a potential “sell-the-news” event, similar to patterns observed during previous XRP ETF launches.
XRP previously declined after Canary Capital’s spot XRP ETF entered the U.S. market in mid-November, despite a strong debut. A subsequent product from Bitwise also experienced initial positive performance before the token declined alongside broader market movements.
Four XRP ETFs currently trading have attracted substantial net inflows since the first product launched several weeks ago, according to fund data.
The current price level places XRP lower on a year-to-date basis, having entered 2025 at a higher valuation. The performance contrasts with developments at Ripple Labs, the company associated with the token, which experienced significant operational progress during the previous year.
Source: https://crypto.news/xrp-price-falls-to-2-as-traders-eye-new-spot-etf-launch-is-a-bottom-near/
