Despite a 7% Decline, XRP’s ETF Launch Positions the Token for a Possible Move Past $2.36

Analysts say the crypto market is still at risk of deeper losses, as large-scale token movements and macro-driven uncertainty continue to weigh on sentiment.

XRP experienced one of its sharpest intraday declines in weeks, breaking below the psychological $2.30 level and wiping out recent gains. The drop came on the same day as a major industry milestone—the official approval of Canary Capital’s XRPC, the first U.S. spot XRP ETF, which became effective on Nasdaq at 5:30 PM ET. While the launch expands institutional access to XRP, it coincided with a broader market downturn that overshadowed the significance of the debut.

Fear remains the dominant theme across markets. FxPro senior analyst Alex Kuptsikevich noted that crypto price action still reflects “a brief rebound within a larger corrective phase,” warning that market structure remains vulnerable. That tone is echoed in large-cap token flows and on-chain activity, with 110.5 million XRP moving between unknown wallets around the time of the selloff—heightening uncertainty during peak volatility.

Technical Analysis

XRP’s price action confirmed a decisive breakdown, reflecting a weakened technical setup:

Support & Resistance

• $2.29–$2.30 emerges as the new primary support after losing the psychological floor
• Former support at $2.36, $2.40, and $2.47 now acts as stacked resistance levels
• Bulls must reclaim $2.36 to regain structural momentum

Volume Profile

• Session volume surged to 157.9M (+46%), pointing to heavy distribution
• The breakdown featured a 254% spike in hourly volume, typical of liquidation-driven declines
• No significant rebound volume occurred during consolidation, signaling a lack of buyer engagement

Chart Structure

• The descending triangle pattern broke down decisively, invalidating the prior reversal setup
• A lower consolidation band is forming between $2.29 and $2.33
• The move aligns with the broader medium-term downtrend across crypto markets

Momentum Indicators

• Oversold readings appeared intraday, but no firm reversal signals have emerged
• Price remains below major EMAs, with the 50D/200D trend sloping bearishly

Key Levels and Catalysts to Watch

XRP is now trading at a crucial juncture:

• Holding $2.29 is essential—losing this level could send price quickly into the $2.00–$2.20 demand area
• Any bullish recovery must first reclaim $2.36 before a structural reversal can begin
• ETF inflows will be a major catalyst; opening-day XRPC volume will help determine whether institutions treat the new fund as a buy opportunity or a liquidity event
• Continued monitoring of the 110.5M XRP whale transfers is critical—exchange deposits would confirm added downside pressure
• With sentiment fragile across all major assets, XRP remains especially sensitive to broader market weakness

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