XRP Drops 4.3% Despite XRPC ETF Debut as Selling Pressure Hits Key Support

What to Know

• XRP dropped 4.3% from $2.31 to $2.22 despite the launch of a new U.S. spot XRP ETF.
• Selling pressure intensified as the $2.24 support level broke amid a 69% surge in volume.
• The new XRPC ETF saw $58.6M in first-day volume, signaling strong institutional interest even as market sentiment remained bearish.
• Roughly $28M in XRP derivatives liquidations occurred, with long positions taking the biggest hit.
• Price found temporary stabilization near $2.22, but major resistance at $2.23–$2.24 continues to cap upside attempts.

XRP slumped 4.3% over the past 24 hours, dropping from $2.31 to $2.22 as broader crypto market weakness outweighed the impact of a newly launched U.S. spot XRP ETF. The token remained trapped below the $2.23–$2.24 resistance zone, highlighting ongoing bearish pressure even amid rising institutional participation.

Market sentiment across major assets remains fragile, with Bitcoin’s decline amplifying risk-off behavior. Although XRP found buyers near $2.22, the failure to reclaim broken support levels suggests the downtrend is still dominant.

Market Overview

The session was defined by intense selling pressure as XRP broke below the $2.24 support area in a high-volume decline. While the launch of a U.S.-listed XRP ETF attracted notable institutional interest, it was not enough to counteract bearish sentiment across crypto markets.

Investors continue to grapple with heightened volatility, risk aversion, and uncertainty surrounding global macroeconomic trends. The combination of ETF inflows and futures-market liquidations created a conflicting backdrop that left XRP vulnerable to further downside.

ETF Background and Market Reaction

The newly launched U.S. spot XRP ETF—listed under the ticker XRPC by Canary Capital—saw a surprisingly strong debut, recording $58.6 million in first-day volume. This figure exceeded market expectations by a wide margin and signaled meaningful institutional appetite for XRP exposure.

However, the positive headline failed to stabilize the market. Futures data showed roughly $28 million in XRP liquidations over 24 hours, with nearly $25 million coming from long positions. This imbalance highlighted a stressed derivatives environment in which bullish traders were consistently squeezed out of the market.

Analysts noted that while ETF inflows suggest strengthening long-term demand, the immediate price action is still heavily influenced by macro-driven selling and declining liquidity across the crypto sector.

Price Action Breakdown

XRP lost 4.3% during the session ending November 16 at 02:00 UTC, carving a $0.10 intraday range. The decline reinforced the series of lower highs that has defined its short-term trend.

The heaviest selling appeared at 00:00 UTC when approximately 74 million XRP traded—69% above the 24-hour average—driving the breakdown through $2.24. Price rapidly moved to $2.22, marking the daily low before stabilizing into a tight consolidation range.

Despite ETF-driven optimism, sellers remained dominant as the token rejected the $2.31 resistance level and failed to maintain key price floors. Subsequent volume spikes near 57 million during each decline confirmed continuous distribution and a lack of bullish conviction.

Technical Analysis

Support and Resistance Levels

• Primary support: $2.22
• Immediate resistance: $2.23–$2.24
• Key Fibonacci support: $2.16 (0.382 retracement)
• Broader downside target: $2.02–$1.88 if $2.16 breaks

A loss of $2.22 would expose the Fibonacci zone at $2.16. This level represents the most critical short-term support; failure here risks triggering accelerated selling toward $2.02 and potentially $1.88.

Volume Profile

• Breakdown volume: 74M XRP (+69%) confirming strong capitulation
• Exhaustion signals: Two reversal-phase spikes of 4.7M each at 01:39 and 01:46 UTC
• Recovery volume: Stable but subdued, consistent with bottom-fishing rather than trend reversal

Chart Structure

• XRP printed a sharp V-shaped recovery off $2.22, indicating aggressive dip buying
• Higher lows formed sequentially at $2.209 → $2.217 → $2.227, suggesting short-term stabilization
• The broader downtrend remains intact until XRP clears the $2.23–$2.24 zone
• A confirmed break above $2.31 is required to negate the immediate bearish structure

Momentum Indicators

• Intraday oscillators flashed oversold readings during the decline, supporting the reversal from $2.22
• Daily trend bias remains firmly bearish with both the 50-day and 200-day moving averages sloping downward
• Momentum remains capped by structural resistance and prevailing market weakness

What Traders Should Know

XRP now sits at a tactical turning point after a significant selloff:

• Maintaining support at $2.22 is essential; losing this level exposes $2.16 quickly
• A reclaim of $2.24, followed by $2.31, is necessary to regain bullish momentum
• ETF inflows may add volatility—watch early U.S.-market XRPC volume
• The V-shaped rebound offers short-term relief but does not invalidate the downtrend
• A break above $2.48 would be the first major signal that the broader trend is shifting back toward bullish territory

Frequently Asked Questions (Q&A)

When do the new rules take effect?

The regulations come into force on February 2, and existing firms will have nine months from that date to comply.

How much capital do crypto firms need to hold?

Between 10.8 million and 37.2 million reais (about $2 to $7 million), depending on business size and function.

Do the rules apply to international companies?

Yes. Any foreign company serving Brazilian clients must create a local legal entity and operate under Brazilian jurisdiction.

Which transactions are now regulated?

All cross-border crypto transactions, stablecoin operations, self-custody wallet transfers, and crypto-fiat exchanges fall under the new framework.

What happens to firms that don’t comply?

Non-compliant firms risk losing their license or being barred from providing crypto services in Brazil.