- XRP has dropped below $2 despite the strong debut of the XXRP ETF, which recorded over $5 million in trading volume on its first day.
- Ongoing market volatility driven by U.S. tariffs and bearish technical indicators point to further downside, with XRP potentially heading toward the $1.40 support level.
XRP is facing heavy headwinds this week, extending its correction below the critical $2.00 mark even as the much-anticipated XXRP ETF made a strong debut with over $5 million in trading volume on the New York Stock Exchange (NYSE) Arca.
Despite this notable ETF launch, the price of XRP tumbled by 7.4% in the past 24 hours and is currently trading near $1.1770, with its market capitalization shedding nearly $18 billion in just seven days. The broader crypto market remains unsettled, largely due to mounting macroeconomic pressure and increasing uncertainty surrounding U.S. President Donald Trump’s tariff policies.
The XXRP ETF Outpaces Expectations—but XRP Still Drops
The launch of the XXRP ETF, a 2x leveraged exchange-traded fund, was expected to bolster investor sentiment and inject momentum into XRP trading. Impressively, it recorded over $5 million in volume on its first day—outperforming the 2x Solana ETF (SOLT) by four times and ranking in the top 5% of all new ETF debuts.
However, the positive ETF news did little to halt XRP’s slide. The sell-off that began on “Black Monday” continued into midweek, as market players digested the implications of Trump’s reciprocal tariffs, which officially take effect on Wednesday. This risk-off environment has continued to fuel volatility and bearish sentiment across crypto markets.
Technical Indicators Flash Bearish
Technically, XRP is not in a favorable position. The token trades below all major moving averages—the 50-day, 100-day, and 200-day EMAs—suggesting a bearish trend is firmly in place. It recently dipped to $1.6176, a level not seen since November 2024, and could soon test deeper support between $1.4000 and $1.4500.
The Relative Strength Index (RSI) is now nearing oversold territory, and the MACD remains bearish, reinforcing the current downtrend. Analysts caution that if XRP cannot reclaim the $1.8000 level soon, it risks further losses, potentially even dipping toward $1.0000.
Is There Hope for a Reversal?
While the technical outlook is grim, some traders are eyeing a potential bounce-back if the market finds relief from macroeconomic stressors. As the RSI nears oversold levels, a short-term rebound may be possible. Savvy investors are considering dollar-cost averaging (DCA) as a strategy to accumulate XRP at lower levels in case a recovery pushes the price back above $2.
For now, XRP remains on shaky ground, caught between promising ETF momentum and overwhelming macroeconomic pressure.
