The debut of the first US spot exchange-traded fund for XRP marked a significant milestone for the cryptocurrency. However, the event triggered a substantial price drop, illustrating a classic “sell the news” market reaction. The digital asset’s value fell more than 8%, declining from approximately $2.50 to $2.28. This downturn prompts a critical evaluation: is this a temporary lull preceding a major move, or the start of a more prolonged corrective phase?
Market Sentiment Reaches Extreme Fear Levels
Current investor mood surrounding XRP has turned deeply negative. Data from Santiment indicates this is “one of the most fear-filled moments of 2025.” Analysis of social media commentary reveals bearish statements are outnumbering bullish ones by a factor of two. Paradoxically, such extreme fear often acts as a contrarian indicator. Historical data suggests these periods frequently establish market bottoms, creating potential entry points for long-term investors before a recovery begins.
On-chain metrics present a contrasting picture to the price action. The creation of new XRP wallets has surged, exceeding 10,000 daily—a level not seen for many months. Transaction volume exploded in November, recording increases of up to 500%. Furthermore, the third quarter saw daily active addresses grow by 15.4% and transactions rise by 8.9%. A particularly notable development is the 215% expansion in the market capitalization of tokenized real-world assets (RWAs) on the XRP Ledger.
Canary ETF Records Strong Volume Amid Price Plunge
Trading for the Canary XRP ETF (XRPC) commenced on the Nasdaq on Friday, November 14. From the fund provider’s perspective, the first day was remarkably successful. The launch generated a trading volume surpassing $58 million and attracted net inflows of $245 million, ranking it among the year’s most effective ETF introductions. This activity has captured the attention of major Wall Street institutions; Franklin Templeton, Bitwise, Grayscale, and WisdomTree have all announced additional XRP ETF products scheduled for November.
Should investors sell immediately? Or is it worth buying XRP?
While institutional investors demonstrate clear interest, the spot market response has been disappointing. XRP’s price fell decisively below both its 50-day and 200-day exponential moving averages, signaling strengthening short-term bearish momentum. The support range between $2.20 and $2.40 has now become a critical battleground. A decisive breakout above $2.65 is likely needed to improve the technical outlook.
Ripple Secures Major Funding as Institutional Infrastructure Grows
Separate from the price volatility, Ripple is substantially expanding its operational foundation. During November, the company closed a $500 million funding round, achieving a valuation of $40 billion. This round attracted heavyweight backers, including Citadel Securities and Fortress Investment Group. Concurrently, the RippleNet network continues to grow, now encompassing more than 300 partners from the banking and financial services sector.
Market analysts project that the pipeline of planned XRP ETFs could potentially unlock institutional investments totaling as much as $8 billion. The necessary infrastructure is clearly being established. Whether this fundamental strength will promptly reflect in the cryptocurrency’s price remains uncertain. In the immediate term, the $2.65 price level appears crucial. A sustained breach above this resistance could finally ignite the optimism surrounding the ETF developments.
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