XRP ETF Launches with Strong Momentum—Why Aren’t Ripple Tokens Responding?
The debut of the XRP ETF has sparked excitement in crypto markets, yet Ripple-affiliated tokens remain oddly stagnant. Here's what's happening behind the scenes.
The ETF Effect: More Hype Than Impact?
While institutional money flows into the new XRP ETF, retail traders are left scratching their heads as Ripple's ecosystem tokens fail to mirror the enthusiasm. Is this a case of 'buy the rumor, sell the news'—or just another example of Wall Street's selective crypto appetite?
Liquidity vs. Legacy Baggage
XRP's ETF-driven liquidity surge highlights a growing divide between 'approved' assets and the rest of the crypto wild west. Meanwhile, Ripple's legal overhang continues to cast shadows where ETF sunshine should theoretically reach.
Another day in crypto: the suits get fresh financial instruments, while the degens stare at unchanged charts. Some things never change.
Jung acknowledges the persistence of XRP communities
The senior analyst acknowledged the resilience of the XRP Army, admitting that XRP has one of the strongest and most persistent retail communities in the crypto space. He noted that the level of fandom enjoyed by XRP is difficult to quantify. However, Jung observes that the XRP Army has historically translated into outsized trading activities during new product launches.
Jung also noted that professional investors who were previously hesitant are now at ease accessing XRP through regulated wrappers. He believes it is this kind of shift that helped amplify the debut activity. The organic demand during Thursday’s Canary Capital’s spot XRP ETF session also appeared to be mixed, given XRP’s renewed institutional interest. Jung believes that a meaningful portion of the FLOW also came from liquidity providers managing creation/redemption baskets, as well as traders capturing short-lived premiums or discounts versus the spot price.
Meanwhile, Lawrence Samantha, the CEO of NOBI, says it could be a strong sign of how institutions are treating XRP if Canary Capital’s spot XRP ETF continues recording the steady flows and creations. However, the key test WOULD be how XRPC satisfies the crypto community’s pool of demands.
XRP plummets despite strong XRP ETF debut
On-chain data retrieved from CoinGecko shows that the price of XRP has dropped 7.8% in the past 24 hours, settling at $2.30 after a slight 0.9% uptick in the last hour. The data also reveals a see-saw performance with the token gaining 3.5% in the past seven days, but losing 7.2% in the past two weeks.
XRP has also performed poorly in the past 30 days, dropping about 8% of its value. However, the token has gained a massive 230.7% over the past year.
Meanwhile, CoinMarketCap’s in-house analysis suggests that XRP is facing increased selling pressure as altcoins like ADA (-8%) and SOL (-8.6%) lead the declines. Similarly, high leverage (open interests of $840B) and sentiment driven by fear (Fear & Greed Index: 22) are creating XRP’s cascading sell-offs. XRP’s 32.7% jump to roughly $7.7 billion in trading volumes may suggest panic selling rather than accumulation.
CoinMarketCap’s analysts also claimed that some traders may have been selling their XRP positions to cover their losses elsewhere. The analysts also observed that XRP is exhibiting bearish momentum after breaking below the 50-day EMA ($2.38) and the Fibonacci 61.8% retracement ($2.31), with the RSI at 44.5.
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