- XRP extends correction, falling 7.4% in the past 24 hours, while market capitalization shrinks by $17.96 billion in a week.
- XXRP ETF records over $5 million volume on day one, surpassing 2x Solana ETF (SOLT).
- XRP recovery is still elusive amid US President Donald Trump’s tariff standoff.
- Bearish technical indicators signal XRP could drop to test the next critical support at $1.4000.
XRP struggles to stay afloat, with key support levels crumbling due to volatility from macroeconomic factors, including United States President Donald Trump’s reciprocal tariffs kicking in on Wednesday. The cross-border money transfer token is down 7.4% in the last 24 hours and trading at $1.1770 in the late Asian session on Wednesday despite the launch of the XXRP ETF—a 2x leveraged exchange-traded fund—on the New York Stock Exchange (NYSE) Arca on Tuesday.
XRP hangs on a cliff as XXRP ETF goes live
XRP’s downside remains heavy as investors constantly react and adjust to Trump’s seemingly uncertain tariff policy, such that recovery from the “Black Monday” sell-off quickly fizzled out during the American session on Tuesday.
The drawdown in XRP below $2.000 extended to $1.6176 this week as the XXRP ETF went live on NYSE Arca. The United States’ first XRP-based ETF product is designed to capitalize on the underlying asset’s volatility with 2x leverage.
According to data from Bloomberg ETF analyst Eric Balchunas, XXRP ETF posted more than $5 million in volume on day one of its trading, a commendable achievement considering the ongoing tumult in crypto and other global markets. Although 200x less than the volume of BlackRock’s IBIT ETF posted on day one, this performance puts XXRP in the top 5% of new ETF launches. Additionally, XXRP volume was four times the 2x Solana ETF (SOLT).
$XXRP (2x XRP ETF) saw $5mil in volume on Day One, very respectable, esp considering the mkt conditions. That puts it in approx top 5% of new ETF launches, and about 4x what the 2x Solana ETF $SOLT did (altho both 200x less than King IBIT). pic.twitter.com/u3QQq5yuHv
— Eric Balchunas (@EricBalchunas) April 8, 2025
Crypto lawyer John Deaton said in response to Balchunas’s XXRP ETF post that XRP has far more appeal than industry stakeholders would like to admit. He highlighted that despite the negative sentiment around XRP, the token received overwhelming support from 75,000 holders who petitioned the court during the Ripple lawsuit against the Securities and Exchange Commission (SEC).
Despite all the negative sentiment from people within the crypto industry, I’ve always maintained that XRP has much more appeal than industry players want to admit. Just think, 75K XRP holders joined together to petition the Court in the Ripple case – extraordinary. IMO, XRP… https://t.co/ZPL8CKDrYR
— John E Deaton (@JohnEDeaton1) April 9, 2025
Beyond the XXRP ETF, Trump’s reciprocal tariffs are taking center stage this week. The President insisted on Tuesday that the tariffs imposed on April 2 will start as planned, sidestepping calls for a 90-day suspension to allow for negotiation.
A risk-off sentiment is expected to continue in the cryptocurrency market, affecting crypto majors such as Bitcoin (BTC), Ethereum (ETF), and other leading altcoins.
XRP technicals turn bearish amid increasing risk-off sentiment
XRP holds below the 50-day Exponential Moving Average (EMA), the 100-day EMA and the 200-day EMA. The token trades below key support areas, including $2.000 and $1.8000. XRP extended the lower leg to $1.6176, a level seen last in November 2024, but hovers slightly higher at $1.7500 at the time of writing.
A noticeable downtrend in the Relative Strength Index (RSI), touching the oversold region, suggests that traders are in a risk-off mode. The Moving Average Convergence Divergence (MACD) indicator validates the negative sentiment, extending the sell signal below the mean line. If XRP fails to reclaim near-term support at $1.8000, declines will continue to the next critical support between $1.4000 and $1.4500. Considering the current market conditions, it seems too premature to call off an extended drop to $1.0000.
XRP/USDT daily chart
However, traders must be alert with the RSI nearing oversold conditions, as a quick bounceback is on the cards. Depending on how the market reacts to the US tariffs, investors may want to carefully plan how to buy the dip, using mechanisms like dollar cost average (DCA) to ensure they do not miss out on potential recovery gains above $2.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
