XRP Price Declines Despite Strong ETF Launch Demand

NEW YORK, New York — XRP’s new exchange-traded fund (ETF) launched on Nasdaq last week but its price has dropped nearly 11% since the debut. Despite strong inflows, market pressures and large sell-offs by wealthy investors have limited the ETF’s impact.

Canary Capital‘s Spot XRP ETF (XRPC) saw nearly $59 million in first-day trading volume, marking a strong debut among 900 ETF launches this year. Data showed cumulative inflows rose to over $268 million during the first two days. However, XRP’s price fell to $2.14 at press time, down 5.22% from the previous day.

According to Glassnode data, only 58.5% of XRP supply is currently profitable, the lowest since November 2024. This suggests a fragile market structure with many late buyers at risk.

Reports indicated that wealthy XRP holders sold around 200 million XRP within 48 hours of the ETF launch, which intensified negative sentiment in the market. Analysts suggest that this profit-taking by large investors has offset the positive sentiment stemming from the ETF.

The broader cryptocurrency market also faces challenges, losing $1.1 trillion in total market value over the past 41 days, averaging a decline of $27 billion daily. One analyst pointed out that Bitcoin‘s performance affects XRP, highlighting ongoing market weakness.

Experts believe the effects of institutional investment on prices often take time. One analyst suggested noticeable impacts may not manifest until 2026, despite retail expectations for a quicker turnaround.

Technical indicators suggest potential market stabilization, with XRP’s Net Unrealized Profit and Loss (NUPL) hitting a yearly low of 0.32. Sentiment remains in the fear zone, which historically correlates with market bottoms.

Recent volatility saw XRP’s price fluctuate significantly, with a forced selling spike causing a drop from $2.31 to $2.29 within minutes. Analysts emphasize that XRP must regain key resistance levels to recover, signaling that the ETF’s launch does not guarantee an immediate market upturn.