The price of Ripple (XRP) has dropped below the $2 mark, revisiting levels last seen during a significant market dip in October. This development coincides with the launch of the highly anticipated Bitwise XRP ETF on the New York Stock Exchange (NYSE), a milestone that captivated the Ripple community. Despite the promising start for the ETF, with impressive first-day trading figures of $22 million just three hours before market close, investor sentiment has taken a hit.
The Ripple Community Faces Market Challenges
On the first trading day of the Bitwise XRP ETF, Ripple’s native token fell by 2.5% in the last 24 hours, trading at $1.98. Over the past week, XRP experienced a significant decline of nearly 16%. These numbers reflect bearish sentiment within the broader crypto market, where Bitcoin’s dip below $87,000 also led to over $220 million in long positions liquidated within an hour.
Interestingly, this downturn occurred as optimism swirled around the XRP ETF’s debut. Ripple CEO Brad Garlinghouse celebrated this milestone, referring to it as the “pre-Thanksgiving rush” for XRP-backed exchange-traded funds. Despite this enthusiasm, critical challenges remain for Ripple and its community.
ETF Performance Meets Whale Activity
The Bitwise XRP ETF is the second market product following Canary Capital’s XRPC ETF, which had strong early volume. Nonetheless, as ETF analyst James Seyffart reported, the rise of institutional interest in the XRP ETF may take time, with significant impacts expected to emerge in 2026.
However, whale activity has played a crucial role in the current price drop. Reports reveal that approximately 200 million XRP tokens were sold within 48 hours after the ETF launch. This selling pressure, combined with general uncertainty in the crypto market, has created a volatile environment for XRP traders and investors.
Market Sentiment and Structural Concerns
According to blockchain analytics firm Glassnode, the share of XRP supply currently in profit has dwindled to 58.5%, marking its lowest point since November 2024. This comes despite today’s price levels being roughly 4x higher than at that time. The analysis underscores the structural fragility of the XRP market, where a significant portion of investors holds tokens acquired at higher prices, leading to unrealized losses.
Given these trends, investors may want to focus on using innovative tools to navigate the volatile market. Products like the Ledger Nano X can help secure your XRP holdings while awaiting the potential long-term benefits of institutional ETF involvement.
Looking Ahead
As optimism around the Bitwise XRP ETF grows, industry experts suggest that 2026 could be a crucial year for Ripple’s institutional adoption. Until then, volatility may continue to affect its market performance. Whether you’re a seasoned investor or new to crypto, staying updated on market trends and using secure solutions to safeguard assets will be key strategies moving forward.
