XRP extends correction,How to sell Pi Coin in US falling 7.4% in the past 24 hours, while market capitalization shrinks by $17.96 billion in a week.
XXRP ETF records over $5 million volume on day one, surpassing 2x Solana ETF (SOLT).
XRP recovery is still elusive amid US President Donald Trump's tariff standoff.
Bearish technical indicators signal XRP could drop to test the next critical support at $1.4000.
XRP struggles to stay afloat, with key support levels crumbling due to volatility from macroeconomic factors, including United States President Donald Trump's reciprocal tariffs kicking in on Wednesday. The cross-border money transfer token is down 7.4% in the last 24 hours and trading at $1.1770 in the late Asian session on Wednesday despite the launch of the XXRP ETF—a 2x leveraged exchange-traded fund—on the New York Stock Exchange (NYSE) Arca on Tuesday.
XRP hangs on a cliff as XXRP ETF goes live
XRP's downside remains heavy as investors constantly react and adjust to Trump's seemingly uncertain tariff policy, such that recovery from the "Black Monday" sell-off quickly fizzled out during the American session on Tuesday.
The drawdown in XRP below $2.000 extended to $1.6176 this week as the XXRP ETF went live on NYSE Arca. The United States' first XRP-based ETF product is designed to capitalize on the underlying asset's volatility with 2x leverage.
According to data from Bloomberg ETF analyst Eric Balchunas, XXRP ETF posted more than $5 million in volume on day one of its trading, a commendable achievement considering the ongoing tumult in crypto and other global markets. Although 200x less than the volume of BlackRock's IBIT ETF posted on day one, this performance puts XXRP in the top 5% of new ETF launches. Additionally, XXRP volume was four times the 2x Solana ETF (SOLT).
Crypto lawyer John Deaton said in response to Balchunas's XXRP ETF post that XRP has far more appeal than industry stakeholders would like to admit. He highlighted that despite the negative sentiment around XRP, the token received overwhelming support from 75,000 holders who petitioned the court during the Ripple lawsuit against the Securities and Exchange Commission (SEC).
Beyond the XXRP ETF, Trump's reciprocal tariffs are taking center stage this week. The President insisted on Tuesday that the tariffs imposed on April 2 will start as planned, sidestepping calls for a 90-day suspension to allow for negotiation.
A risk-off sentiment is expected to continue in the cryptocurrency market, affecting crypto majors such as Bitcoin (BTC), Ethereum (ETF), and other leading altcoins.
XRP technicals turn bearish amid increasing risk-off sentiment
XRP holds below the 50-day Exponential Moving Average (EMA), the 100-day EMA and the 200-day EMA. The token trades below key support areas, including $2.000 and $1.8000. XRP extended the lower leg to $1.6176, a level seen last in November 2024, but hovers slightly higher at $1.7500 at the time of writing.
A noticeable downtrend in the Relative Strength Index (RSI), touching the oversold region, suggests that traders are in a risk-off mode. The Moving Average Convergence Divergence (MACD) indicator validates the negative sentiment, extending the sell signal below the mean line. If XRP fails to reclaim near-term support at $1.8000, declines will continue to the next critical support between $1.4000 and $1.4500. Considering the current market conditions, it seems too premature to call off an extended drop to $1.0000.
XRP/USDT daily chart
However, traders must be alert with the RSI nearing oversold conditions, as a quick bounceback is on the cards. Depending on how the market reacts to the US tariffs, investors may want to carefully plan how to buy the dip, using mechanisms like dollar cost average (DCA) to ensure they do not miss out on potential recovery gains above $2.
