XRP ETF Launch Breaks Records, But Price Lags Behind Market Rally

REX-Osprey’s newly launched XRP exchange-traded fund (ETF), XRPP, made a strong debut yesterday, breaking previous records for XRP-linked products. 

However, despite the historic start, the enthusiasm has yet to lift XRP’s spot price. The token has slipped by 1% in the past 24 hours, while the rest of the broader crypto market records gains. This suggests that while XRPP’s strong launch highlights appetite for XRP-related investment products, bearish bias dominates.

XRP ETF Shatters Records; Traders Unimpressed

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In an earlier report, BeInCrypto noted that within 90 minutes of trading, the newly launched XRPP ETF logged volumes five times higher than earlier XRP-based futures contracts, signaling surging institutional interest.

However, despite the ETF debut, XRP’s price performance has remained muted, slipping by 1% over the past day. This divergence stems largely from a growing bearish bias among both spot and derivatives traders, who appear reluctant to ride the ETF momentum. 

While institutional demand for XRPP is undeniable, short-term market participants continue to favor caution, with many betting against the token’s near-term upside potential.

This is reflected by its plummeting long/short ratio, which currently sits at a 30-day low of 0.84, confirming the strengthening demand for shorts.

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The long/short ratio compares the number of long and short positions in a market. When an asset’s long/short ratio is above one, there are more long than short positions. 

On the other hand, when the ratio falls below one, it indicates that short positions dominate the market. This reflects a clear tilt toward bearish sentiment. 

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With XRP’s ratio slipping to a 30-day low, its futures traders are increasingly betting on further declines even as the XRPP ETF continues to enjoy institutional patronage. 

Moreover, on the daily chart, XRP’s Chaikin Money Flow (CMF) is trending downward and poised to break below the zero line. This indicates the drop in buy-side pressure, which puts the token at risk of a near-term decline.

The CMF indicator measures the flow of capital into or out of an asset by tracking price and volume. A rising CMF suggests stronger buy-side pressure, while a falling CMF signals increasing sell-side pressure and potential distribution. 

For XRP, the downward trajectory of its CMF suggests that, despite the surge in institutional demand through the XRPP ETF, spot market participants are steadily pulling liquidity out of the token.

XRP Price at a Crossroads: $2.87 Breakdown or $3.22 Breakout?

This trend highlights the risk facing XRP in the near term. Unless spot buying pressure strengthens and sentiment shifts positively across markets, the token’s price may trend sideways or even fall toward $2.87.

However, if new demand enters the market, this could strengthen XRP and push its price upward to $3.22.