Why Is XRP Falling Even After the Successful Launch of the XRP ETF?
Despite record inflows for the Canary Capital XRP ETF, XRP's price dropped nearly 11% due to whale selling and broader market weakness.Summary
Canary Capital's Spot XRP ETF (XRPC) launched on Nasdaq with record first-day trading volume of nearly $59 million and cumulative inflows exceeding $268 million over the first few sessions. However, this strong institutional demand has been overshadowed by a nearly 11% price drop in XRP since November 13.
The primary reasons for this divergence are significant selling pressure from XRP whales, who reportedly sold around 200 million XRP within 48 hours of the launch, likely engaging in profit-taking. Furthermore, the broader cryptocurrency market has experienced weakness, losing $1.1 trillion in market value over the past 41 days, which has pressured XRP.
Experts suggest that the impact of institutional liquidity often lags, and noticeable price effects might not appear until 2026, contrary to retail expectations of immediate gains. Despite the current decline, technical indicators like the Net Unrealized Profit and Loss (NUPL) dropping to a yearly low suggest sentiment is in the 'fear/anxiety zone,' which has historically marked market bottoms for XRP.
(Source：BeInCrypto)