XRP Dips to $2 Ahead of Anticipated Spot ETF Launch — Is the Bottom In?
dropped to $2 during a severe 12-hour trade-off in the cryptocurrency market, as money left digital assets. Compared to other large-cap cryptocurrencies, the token didn’t do as well. For example, ETH and Binance Coin lost less value within the identical time period.
The drop brought XRP down to a critical technical support level that has held up throughout past market crashes. Even so, XRP is already trading below its 2025 opening price, which means it is down for the year.
Investors Blame Over-Leverage and ETF Hype
Market analysts there was no one economic or regulatory reason for the change. Instead, they said it was due to the unwinding of over-leveraged positions in derivatives markets. The trade-off happened at the identical time as more talk about a new spot XRP platform-traded fund, which some people called a classic “trade-the-news” setup.
The new ETF will likely track the CME CF XRP-Dollar Reference Rate, adding to the expanding number of XRP-based investment products. Traders have compared this to past periods when prices rose sharply before launches, only to fall sharply later than the products went live.
The History of XRP Spot ETFs
XRP’s price dropped later than the introduction of s spot XRP ETF in the U.S. in mid-November, even if trading activity and inflows were strong at the begin. A later spot ETF from Bitwise also got off to a excellent begin, but XRP’s price fell in step with the rest of the market.
There are now four spot XRP ETFs listed, and since the first one went live a few weeks ago, they have all viewn significant net inflows.
This shows that both institutional and retail investors are still interested in obtaining regulated exposure to XRP, even though the token’s spot price is struggling to maintain its upward momentum.
Is XRP Close to the Bottom?
Some analysts think that XRP may be close to a local bottom because it is returning to a historically significant support zone around $2.
In the past, the level has served as a floor during significant corrections, which supports the idea that current levels could attract dip-purchaseing interest from both ETF-focused investors and spot traders.
However, XRP has not performed as well as it did in January 2025, even though , the firm that issues the coin, is still making progress in its operations.
Ripple’s business changes and XRP’s market price are not in sync, so investors are watching to view whether increased demand from ETFs and a better risk sentiment can assist the token stay above this support level in the next few sessions.
