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

XRP extended its downturn on Friday, dropping 4.3% from $2.31 to $2.22 despite the high-profile launch of the first U.S. spot XRP ETF. Heavy selling overwhelmed initial optimism, though a sharp, high-volume V-shaped intraday reversal hinted at early signs of seller exhaustion.

News Background

Market sentiment across crypto remains fragile as risk-off flows dominate. Volatility has spiked across majors, with Bitcoin’s weakness cascading into high-beta assets like XRP.

Canary Capital’s newly listed XRPC ETF delivered a standout debut:

• $58.6 million trading volume on day one, crushing expectations of $17 million

• Strong institutional participation despite weak market conditions

Yet XRP failed to capitalize on the catalyst. Derivatives markets reflected deep stress, with:

• $28M in XRP liquidations over 24 hours

• $25M coming from long positions, worsening the cascade

Analysts say ETF inflows show real demand, but macro uncertainty and low liquidity continue to overpower bullish catalysts.

Price Action Summary

XRP’s decline unfolded over a $0.10 trading range, reinforcing a clean sequence of lower highs that confirmed bearish market structure.

Key session highlights:

• Price dropped from $2.31 to $2.22, closing on session lows

• Breakdown accelerated at 00:00 UTC, with 74M XRP traded — 69% above average

• Multiple selloff spikes above 57M reinforced sustained distribution

• Final stabilization occurred inside a narrow $2.22–$2.23 band

Attempts to defend the $2.24 level failed repeatedly, turning it into a firm resistance zone.

Technical Analysis

Support & Resistance

• Primary support: $2.22 (capitulation low)

• Immediate resistance: $2.23–$2.24 breakdown zone

• Critical support: $2.16 (Fibonacci 0.382) — loss opens risk to $2.02–$1.88

• Major upside invalidation: Reclaim of $2.31

Volume Profile

• Breakdown volume: 74M XRP (+69%), confirming capitulation

• Two late reverse-phase spikes: 4.7M XRP each, signaling fading sell pressure

• Stabilization saw normalized but steady accumulation, consistent with bottom-fishing bids

Chart Structure

• Price formed a textbook V-shaped reversal after hammering into $2.22

• Higher lows appeared: $2.209 → $2.217 → $2.227, signaling intraday momentum shift

• Broader downtrend from $2.31 remains intact

• Failure to clear the $2.23–$2.24 band limits continuation

Momentum Indicators

• Intraday oversold signals triggered reversal

• But daily bias remains bearish

• 50D/200D trend structure still slopes downward, reinforcing overhead pressure

What Traders Should Watch

XRP now sits at a critical inflection zone:

• $2.22 must hold — a breakdown exposes rapid downside toward $2.16

• Falling through $2.16 accelerates decline toward $2.02–$1.88

• Bulls need a clean reclaim of $2.24, followed by $2.31, to restore bullish structure

• Early XRPC ETF flows at the U.S. open will be key for volatility

• A major trend shift requires a decisive breakout above $2.48, opening targets toward $2.60+

Overall, XRP’s short-term bounce provides relief, but the dominant trend remains bearish until major resistance levels are reclaimed.