- XRP’s price drops as ETF approval leads to sell-offs.
- Whale activity and liquidations contribute to XRP’s downward movement.
- XRP market faces uncertainty after ETF approval and liquidation surge.
XRP’s price has dropped 2.84% today, settling at $2.76, amid significant volatility in the market. The decline comes despite the approval of a Hashdex ETF by the SEC, which includes XRP alongside other altcoins such as SOL and XLM.
The approval, which occurred on September 25, initially fueled optimism. However, instead of continuing its upward momentum, XRP faced heavy selling, with traders rushing to “sell the news” after an 8% price increase earlier in the week.
Data from CoinMarketCap shows a 32.68% increase in XRP’s 24-hour trading volume, which reached $9.04 billion. However, this surge in volume wasn’t enough to prevent the downward price movement.
XRP’s market capitalization fell by 2.91%, dropping to $165.37 billion . Despite $37.75 million in spot volume from the ETF launch, the volume remained modest when compared to the BTC and ETH products, which somewhat muted the market’s initial optimism.
Source: CoinMarketCap
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Volatile Liquidations Contribute to the Downtrend
XRP’s recent price drop is also reflected in the liquidation data from CoinGlass. In the past 24 hours, the total value of liquidations for XRP reached $970.05 million, with long positions being the primary victims.
Long liquidations accounted for $850.56 million, while short liquidations were much lower at $119.49 million . Over the last 12 hours, liquidations from long positions totaled $108.69 million, far surpassing the $44.21 million in short liquidations.
These liquidation numbers suggest that many traders were caught off guard by the market’s downturn, unable to maintain their positions as XRP’s price continued to decline. Such sharp liquidations highlight the increased risk and uncertainty in the market, pushing prices further down.
Whale Movements Stir Market Concerns
Additionally, whale activity has contributed to the market’s unease. Today, a massive 25 million XRP, worth $70.48 million, was transferred from Kraken to an unknown wallet. This transfer follows another large transaction, where 20 million XRP, valued at $58.2 million, was moved from the Upbit exchange to an unknown wallet.
Such large transactions often indicate potential shifts in the market, as whales typically make moves based on anticipated price changes.
The combination of these factors, heavy selling post-ETF approval, massive liquidations, and whale activity, has created an environment of uncertainty, which is likely contributing to XRP’s price drop today.
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