Why Is XRP Price Dropping Despite Spot ETF Shattering Records on Day One?

XRP's new spot ETF explodes with record-breaking debut—yet the token's price tanks. What gives?

The Paradox Unpacked

Traders dumped the news—classic 'buy the rumor, sell the fact' action. ETF inflows hit staggering numbers, but profit-taking crushed momentum. Whales moved millions of tokens to exchanges, signaling distribution, not accumulation.

Market Mechanics at Play

Broader crypto sell-off dragged everything down—Bitcoin bled, altcoins followed. Regulatory overhang still looms; the SEC's shadow never fully lifted. Plus, let's be real—Wall Street launching an ETF doesn't magically fix tokenomics.

Where From Here?

Short-term pain doesn't negate long-term potential. ETF adoption brings institutional liquidity—just not overnight. History shows crypto assets often dip post-major product launches before finding footing.

So the ETF nailed day one—but in crypto, even record-breaking news gets a 'meh' from traders chasing the next shiny thing. Typical finance—create a solution, then bet against it.

XRP surprised the market this week by setting a new record with its first U.S. spot ETF launch, but the token’s price has still declined. As of today, XRP is trading at $2.99, down from recent highs, leaving many investors puzzled.

Spot XRP ETF Breaks Day-One Record

On its first day of trading, the $XRPR ETF recorded $37.7 million in volume, edging out $IVES to claim the biggest first-day natural trading volume of any ETF launched in 2025. Dogecoin’s new ETF ($DOJE) also impressed with $17 million, placing it in the top five launches out of 710 so far this year.

Analyst Zach Rector said the first Spot XRP ETF did set a record for day-one trading volume in 2025, but XRP has since faced three straight days of outflows totaling $68.63 million. He explained this is the main reason the price has fallen, moving in line with the rest of the market.

Why Did XRP’s Price Fall?

Despite the record debut, XRP has seen three straight days of outflows totaling $68.63 million. This selling pressure, combined with broader weakness across crypto, has weighed heavily on its price.

Attorney Bill Morgan explained it simply: “There is no mystery why xrp price is down the last 24 hours. Just playing follow the leader.” He pointed to Bitcoin’s recent slide as the key driver, saying XRP’s movements remain strongly correlated with the wider market,  a point Ripple itself emphasized during its SEC lawsuit.

Technical Picture: Important Levels to Watch

For now, XRP is trading just below a critical resistance zone at $3.20. Analysts note:

• A break below $2.73 could confirm a bearish setup, with downside targets near $2.20.
  
• A sustained push above $3.20 may open the door for gains toward $3.40..