Ripple’s XRP Price Slides Below $2: What’s Behind the Recent Drop?

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Ripple’s XRP Price Slides Below $2: What’s Behind the Recent Drop?

Ripple’s XRP has recently fallen below the $2 mark, marking one of its weakest performances since the broad market crash in early October. While several factors have contributed to this decline, the most striking aspect is how the price reacted to the launch of two new XRP-focused exchange-traded funds (ETFs) in the United States — events that many investors initially expected to boost momentum.

A Second ETF Launch – But Not the Reaction Investors Expected

XRP made headlines after Bitwise introduced its dedicated XRP ETF on the New York Stock Exchange, becoming the second such fund to launch within a week. Just days earlier, Canary Capital’s XRPC ETF had already broken the 2025 trading volume record, signaling strong institutional interest.

However, despite expectations of an upswing, both launches triggered what analysts often describe as a classic sell-the-news reaction. Instead of rallying, XRP’s price dropped sharply below $2 shortly after each debut. According to market data, Bitwise’s fund even ranked as the third-most traded new ETF of the year, yet this activity coincided with increased selling pressure rather than accumulation.

Broader Market Conditions Add Fuel to the Decline

The slump in XRP is also occurring against a backdrop of widespread weakness across the cryptocurrency market. Bitcoin, for example, dropped to a seven-month low around $85,000–$83,953, while Ethereum struggled below $2,700–$2,800. This general downturn left most major cryptocurrencies down between 7% and 11% within the same 24-hour window.

Given this environment, XRP’s decline parallels the broader trend — but it has underperformed more than some peers such as SOL, TRX, and BNB. Over the past week alone, XRP has lost roughly 15%, placing it deeper in the red than many other major altcoins.

Market Data Shows a Significant Pullback

According to recent market figures, XRP’s price around $1.92 marked its largest single-day percentage loss since October 10. Its market cap dropped to about $118 billion, well below its historical peak of more than $210 billion. Trading volume over the prior 24 hours exceeded $7.25 billion, representing more than 3% of total crypto market activity.

XRP’s current price also sits about 47% below its all-time high of $3.66, reached on July 18.

Legal Clarity Didn’t Deliver the Expected Boost

Following Ripple’s legal conclusion with the U.S. SEC, many analysts anticipated that regulatory clarity could set the stage for strong institutional inflows. Approval of spot XRP ETFs was widely viewed as a potential catalyst for a major upward price move.

Yet despite the long-awaited launches, the market’s response has been far more cautious. While one perspective frames this as temporary selling pressure common during early ETF trading, another view suggests that macroeconomic weakness is overpowering any single bullish event.

Where Does XRP Stand Now?

With the price falling back to levels not seen since April and June, XRP has now erased its yearly gains. The combination of ETF-linked sell-offs, general crypto market downturn, and lingering uncertainty has pushed the asset into deeper corrective territory.

Still, some analysts note that sell-the-news events have historically been short-lived. Whether XRP follows that pattern or remains pressured by broader market forces will become clearer in the coming weeks.

Conclusion

XRP’s recent decline reflects a complex mix of market psychology, macroeconomic weakness, and shifting investor expectations. While new ETF launches signaled growing institutional interest, the immediate sell-the-news reaction overshadowed their potential impact. Yet even amid volatility, Ripple’s ecosystem remains active, and long-term supporters believe regulatory clarity and new investment products could strengthen XRP’s foundation once market conditions stabilize.

For now, XRP’s journey serves as a reminder to investors: even promising milestones can trigger unexpected market dynamics. But in an industry where sentiment can pivot quickly, today’s downturn may become tomorrow’s opportunity for those watching the long-term evolution of the crypto landscape.

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