Bitwise’s launch of a spot XRP exchange-traded fund failed to deliver the bullish price reaction many market participants had hoped for. Instead of stabilizing the token, the ETF debut on Nov. 20 was followed by a sharp decline that pushed XRP down to $1.81, its weakest level since April 9. The sell-off deepened further during the broader crypto market downturn on Nov. 21, leaving XRP with a 25% loss for the month.
ETF Debut Was Quickly Overshadowed by Market Selling
The listing of a spot XRP ETF was seen as an important milestone for the asset, especially given growing interest in regulated crypto investment products. However, the launch did not translate into sustained buying pressure in the spot market. XRP was trading just above $2 before the wider market rout accelerated, but it soon gave back ground as risk sentiment deteriorated across the digital asset sector.
The broader market backdrop turned sharply negative on Nov. 21. Bitcoin fell to $80,500, while the total cryptocurrency market capitalization slipped below $3 trillion. According to the source material, analysts linked the drop to several overlapping factors, including the weakening of the macro narrative that had previously supported elevated bitcoin valuations. Another bearish development was the confirmation of a so-called death cross in bitcoin, where the 50-day moving average falls below the 200-day moving average, often viewed by traders as a sign of longer-term downside risk.
Against that backdrop, the XRP ETF launch was not enough to offset the broad sell pressure. In fact, the announcement was followed by double-digit losses in XRP and several altcoins within just 24 hours, underlining how product launches can lose impact when the overall market is in a defensive posture.
XRP Remains Deeply Below Its 2025 Peak
Although XRP later recovered modestly to around $1.90 on the morning of Nov. 21, the token was still down 17% over seven days and 20% over 30 days. The decline looks even more severe when measured from its yearly high. Since peaking at $3.66 in July, XRP has lost nearly half of its value.
That slide has had a major effect on XRP’s market capitalization. The asset’s valuation fell from more than $200 billion at its peak to roughly $115 billion, illustrating how quickly investor optimism has faded. What had once looked like a strong momentum trend has now reversed into a prolonged correction.
The downturn also triggered a notable wave of forced liquidations in derivatives markets. Over a 24-hour period, $37 million in XRP long positions were liquidated, compared with only $4.3 million in short liquidations. This imbalance suggests that many traders had been positioned for a rebound or post-ETF upside move, only to be forced out as the market moved lower.
Technical Indicators Point to Continued Weakness
From a technical perspective, XRP’s chart structure has deteriorated significantly. The token is now trading below its short-term, medium-term, and long-term moving averages, a combination that typically signals a firmly established downtrend. Former support levels around $2.07 to $2.10 have now flipped into resistance, making any near-term recovery attempt more difficult.
The 14-day relative strength index (RSI) has dropped into the low 30s. While that reading brings XRP closer to oversold territory, the broader context matters. In a strong downtrend, an RSI near oversold does not necessarily imply an imminent reversal. Instead, it may simply reflect persistent selling pressure and weak demand.
The report also notes that XRP has broken below a falling trend channel in the medium term. That kind of move can indicate that the pace of decline is accelerating rather than stabilizing. In practical terms, it means bearish momentum may be intensifying even after a substantial drawdown.
Why the ETF Catalyst Did Not Hold
The disappointing market reaction highlights an important point about crypto ETFs and price behavior: product launches do not guarantee immediate upside, especially when broader macro and technical conditions are unfavorable. Even a highly anticipated regulated vehicle can struggle to attract enough fresh demand to counterbalance systemic selling.
In XRP’s case, the ETF launch arrived during a period when confidence across crypto was already weakening. Bitcoin’s decline, the market-wide drop in capitalization, and technical breakdowns across major assets created a setting in which traders were more focused on preserving capital than chasing new narratives. As a result, the ETF milestone was treated less like a bullish catalyst and more like an event absorbed by an already fragile market.
That does not necessarily diminish the longer-term relevance of a spot XRP ETF, but in the short run, price action suggests investors remain far more sensitive to liquidity conditions, market structure, and technical signals than to headline developments alone.
Short-Term Outlook Remains Cautious
For now, XRP appears caught between weakening sentiment and technical resistance. The token’s inability to hold above key support levels, combined with the heavy liquidation of bullish derivatives positions, points to a market still under pressure. Any attempt at stabilization may depend not only on XRP-specific developments but also on whether the broader crypto market can regain footing.
As long as XRP remains below its major moving averages and under the former support zone around $2.07 to $2.10, traders are likely to view rallies with caution. The ETF launch may still matter over a longer horizon, but recent price action shows that near-term momentum remains decisively bearish.