XRP Drops 4.3% Amid ETF Launch, Attracts Buyers at $2.22
XRP has recently experienced a significant decline of 4.3%, dropping from $2.31 to $2.22. This downturn was observed during a 24-hour trading session that concluded on November 16 at 02:00 UTC. The price movement occurred amid a mixed landscape of institutional signals and generalized macroeconomic uncertainty.
XRP ETF Launch and Market Dynamics
The backdrop of this price drop coincided with the launch of the new U.S. spot XRP ETF (XRPC) by Canary Capital. This ETF recorded an impressive $58.6 million in volume on its first day, significantly exceeding initial projections of $17 million. However, despite this robust start, selling pressure persisted within the XRP market.
In the wake of the ETF launch, approximately $28 million in XRP liquidations were recorded within a single day. The liquidation predominantly affected long positions, which accounted for nearly $25 million. Analysts point to conflicting institutional flows, where although ETF inflows demonstrate interest, broader risk-averse sentiments are impacting liquidity across the cryptocurrency market.
Price Trends and Technical Analysis
The trading behavior of XRP revealed patterns typical of downward momentum. The price formed a $0.10 range, with lower highs continuing to signal a bearish trend. A significant spike of 74 million XRP traded at midnight UTC, exceeding the 24-hour volume average by 69%. This surge in selling pressure broke the critical support level at $2.24, driving the price down to its session low of $2.22.
- Primary Support Level: $2.22 (capitulation low)
- Immediate Resistance: $2.23-$2.24 (breakdown zone)
- Critical Fibonacci Support: $2.16 (0.382 retracement)
Failure to maintain above the $2.22 support could prompt further declines toward $2.02-$1.88. Conversely, to regain bullish momentum, XRP needs to surpass the resistance zone of $2.23-$2.24.
Current Market Sentiment
The overall sentiment within crypto markets continues to be suppressed, as indicated by heightened volatility. Analysts note ongoing downtrends and the necessity for XRP to reclaim the $2.31 level to pave the way for future gains.
The recent V-shaped reversal provided some short-term relief; however, significant resistance remains. A sustained breakthrough above $2.48 is essential for a potential shift in trend bias towards higher targets exceeding $2.60.
Overall, while the market demonstrates initial recovery signals with the ETF’s promising launch, XRP’s future price stability remains contingent upon critical support levels and broader market dynamics.
