XRP (XRP-USD) was expected to surge following Canary Capital’s XRPC ETF officially launching on Nasdaq Wednesday evening. The debut attracted considerable institutional interest, creating a streamlined product that offers direct exposure to XRP. However, rather than rallying, XRP fell victim to a broader selloff in the cryptocurrency market, as traders seized the opportunity to offload risk amid tumultuous conditions.

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In a surprising turn of events, XRP experienced one of its sharpest intraday drops in recent weeks. The token plunged from $2.48 to $2.30 in the span of a single day, erasing substantial recent gains. This movement also breached a psychological support level that had been in place for several weeks. The decline in Bitcoin prices contributed to this sentiment, prompting many potential buyers to remain on the sidelines. Analysts suggest that the current market conditions appear to reflect a temporary bounce rather than a shift in an overarching downtrend that continues to dominate the crypto landscape.

XRP Breaks Support after Heavy Selling

The most significant damage occurred during a brief yet intense four-minute liquidation event early Thursday. XRP saw a quick decline from $2.31 to $2.29, triggered by a wave of forced selling activity. Trading volume surged to over 250% above normal levels, a clear indicator of liquidation-driven pressure. For the entire session, trading volume reached an impressive 157.9 million XRP, nearly 50% higher than the daily average. This spike indicates a disrupted trading environment and mounting concerns among traders.

Adding to the uncertainty, on-chain flows revealed that over 110.5 million XRP transferred between unknown wallets during the selloff. The timing of these transfers coincided with a peak in market volatility, raising alarms among investors that additional supply might flood exchanges if market conditions worsen.

XRP Technicals Shift to Bearish Territory

This decline further confirmed a significant technical breakdown within the market. The descending triangle pattern that traders had closely monitored failed to hold. Current support now resides around $2.29, while previous support levels at $2.36, $2.40, and $2.47 have now shifted to act as resistance. Under these circumstances, it will be essential for traders to adapt their strategies accordingly.

Despite momentum indicators suggesting oversold conditions, none have yet indicated a proper market reversal. XRP continues to remain below key moving averages, well entrenched within a broader downtrend that has persistently afflicted major cryptocurrencies for weeks. This ongoing trend poses significant challenges for traders and investors alike.

What Traders Should Look Out for Next

As it stands, the $2.29 price level has become crucial. A breach below this pivotal point could precipitate a swift decline into the $2.00 to $2.20 range. Conversely, a substantial recovery will require reclaiming the $2.36 level for bulls to reassert control in this volatile climate.

The next significant catalyst to watch for will be the XRPC trading volume during the opening of the next U.S. market session. Strong inflows could serve to stabilize market sentiment, while weak influxes may signal to institutions that the ETF is being perceived more as liquidity rather than a viable investment opportunity. This recognition can heavily influence future price movements and market dynamics.

Investors should remain cognizant that even a successful ETF launch cannot single-handedly counteract a risk-off market environment. As of now, XRP is positioned at $2.2633, underscoring the continued volatility and uncertainty within the cryptocurrency landscape.

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