XRP dropped 7.3% on Thursday, sliding through key technical levels to close near $2.30 in its steepest one-day decline in weeks. The move came just hours after the launch of the first U.S. spot XRP exchange-traded fund, Canary Capital’s XRPC, a debut that had been expected to bolster sentiment but instead coincided with heavy selling across the market. The token fell from $2.48 to $2.30 over the 24-hour session, breaking successive support levels at $2.46, $2.40, and $2.36. The selloff intensified between 04:32 and 04:35 UTC during a four-minute liquidation wave, when XRP plunged from $2.31 to $2.29 on volumes more than double the daily average. More than 157.9 million XRP changed hands, roughly 46% above normal turnover. On-chain trackers also reported 110.5 million XRP moving between unidentified wallets around the breakdown period, adding to volatility and uncertainty.
“Crypto conditions still look like a short-term rebound inside a broader decline,” said Alex Kuptsikevich, senior analyst at FxPro. “The market structure remains weak, and large token transfers only amplify risk when sentiment is this fragile.”
Investor Takeaway
The ETF debut drew record inflows but failed to offset broader liquidation pressure. Traders are watching whether $2.29 holds as support before the next test near the $2.00 zone.
ETF Breaks Records Despite Market Weakness
Canary Capital’s XRPC ETF began trading on Nasdaq at 5:30 p.m. ET, marking the first U.S. spot XRP fund. The ETF ended its first session with $58 million in turnover and $250 million in inflows — the highest for any ETF launch this year, according to Bloomberg analyst Eric Balchunas. The discrepancy between inflows and trading volume reflects the fund’s in-kind creation model, where investors exchange XRP tokens directly for ETF shares rather than cash transactions.
“A few people asking how it’s possible to have ‘only’ $59 million trading volume but nearly $250 million inflows,” said ETF Store president Nate Geraci on X. “The answer is in-kind creations, which don’t show up in volume figures.”
The U.S. Securities and Exchange Commission approved in-kind creation and redemption mechanisms for digital asset ETFs in late July, a change intended to improve efficiency and reduce costs. The XRPC debut represents the first major test of that model for altcoins beyond bitcoin and ether.
Technical Picture Turns Bearish
XRP’s breakdown confirmed a shift to lower trading ranges, with $2.29–$2.30 emerging as immediate support and former support levels now acting as resistance. Technical traders identified the collapse of a descending-triangle formation that had underpinned a short-term bullish setup earlier in the week. Momentum indicators slipped further into oversold territory, while the 50- and 200-day moving averages continued to slope downward, signaling persistent selling pressure.
“XRP is holding near $2.30, showing relative stability but still feeling the effects of declining liquidity and cautious investor sentiment,” said Ryan Lee, chief analyst at Bitget. “For now, the setup looks like a healthy reset rather than the end of the cycle.”
Traders said the next test lies at the $2.29 threshold, a failure of which could trigger a slide toward the $2.00–$2.20 demand zone. Any recovery would need to reclaim $2.36 before a sustained reversal can develop.
Investor Takeaway
Short-term sentiment remains defensive. ETF inflows signal institutional interest, but order-book depth and macro risk will decide whether the token stabilizes or revisits $2.00.
Market Context and Outlook
The XRP slump unfolded amid broad weakness in crypto markets. Spot bitcoin ETFs recorded $866 million in outflows on Thursday, their second-worst day on record after February’s $1.14 billion exit, according to Farside Investors. Broader risk assets also fell after weaker U.S. economic data revived concern about growth and liquidity conditions.
Despite the downturn, data from analytics platform Nansen showed so-called “smart money” traders — those with verified high returns — added $44 million in net long XRP positions in the 24 hours following the ETF debut. The group remains net long $49 million on XRP futures but net short $55 million on Solana (SOL), reflecting a selective shift toward XRP exposure.
While the XRPC ETF’s record inflows highlight institutional demand, the token’s price action shows how easily macro pressure can overshadow fundamental milestones. Traders now view Friday’s U.S. session as a key gauge of whether ETF demand can offset liquidation risk and restore confidence to one of crypto’s most actively traded assets.