XRP Falls 4.3% Even After XRPC ETF Launch on Bitcoin Weakness, Finds Buyers Near $2.22

XRP declined 4.3% to $2.22, struggling to break the $2.23–$2.24 resistance zone, despite the U.S. spot XRPC ETF's strong debut with $58.6 million in first-day volume. This selloff, driven by broader market pressures and $28 million in derivatives liquidations, indicates that institutional interest is currently insufficient to overcome prevailing bearish sentiment. While a V-shaped reversal near $2.22 suggests potential exhaustion of selling pressure, the broader downtrend remains intact, with $2.22 being a critical support level for the asset.

Analysis

XRP experienced a 4.3% decline, falling from $2.31 to $2.22, despite the launch of the U.S. spot XRPC ETF. The ETF recorded a robust $58.6 million in first-day volume, significantly surpassing analyst expectations of $17 million, indicating strong institutional interest. However, this positive catalyst failed to stabilize XRP, as broader market pressures and derivatives stress led to a selloff.

The market remains bearish, with XRP struggling to breach the $2.23–$2.24 resistance zone, reflecting a medium-term downtrend in crypto markets. Approximately $28 million in XRP derivatives liquidations, predominantly long positions, highlighted significant selling pressure. Technically, a V-shaped reversal near the $2.22 capitulation low, supported by higher lows, suggests potential exhaustion of immediate downward momentum.

Despite the short-term relief from the V-shaped rebound, the broader downtrend from $2.31 persists, with the 50D/200D structure sloping downward. Failure to sustain above the $2.23–$2.24 resistance zone limits immediate upside potential. Maintaining the $2.22 support level is critical; a breach could lead to further declines towards $2.16 and potentially $2.02–$1.88.

Key Decisions for Investors

• Closely monitor XRP's ability to hold the critical $2.22 support level, as a breach could expose further downside towards $2.16 and $2.02-$1.88.
• Evaluate whether the strong institutional interest evidenced by the XRPC ETF's $58.6 million debut can sustainably counteract broader market bearishness and macro uncertainty.
• Consider stringent risk management, including potential hedging or reduced exposure, given the persistent downtrend and significant derivatives liquidations.
• Look for a confirmed reclaim of the $2.24 resistance and, more importantly, a sustained break above $2.48 to signal a potential shift in the broader trend bias.