XRP is experiencing significant pressure today, down about 9% and briefly trading below $2.30. This decline occurred shortly after the launch of the US-based spot XRP ETF, which had previously been touted as a bullish trigger for the token's price. Although the launch of this ETF is an important milestone, some market participants view it as a classic example of the 'sell the news' phenomenon.
Despite high enthusiasm for the ETF launch, the market reaction has turned around. There has been a strong correction in the price of XRP, exacerbated by whale movements—large asset holders. The latest on-chain data shows that the 7-day average transfer movements of XRP from various exchange networks to Binance have turned positive. This generally indicates a movement of coins to exchanges with the potential intention to sell.
In the last month, whales were recorded selling around 1.4 billion XRP, which increased selling pressure and encouraged retail traders to follow the trend. As a result, the price of XRP dropped from a high of $2.52 to around $2.28.
When looking at the overall market conditions, a significant correction also occurred, wiping out more than $200 billion in cryptocurrency market capitalization in just 24 hours. However, the 'sell-the-news' effect related to the ETF launch remains the biggest factor driving the decline of XRP.
From a technical perspective, XRP is currently finding support at $2.20, a level that previously faced strong corrections. However, if selling pressure continues, it is possible that XRP may move down towards $2.00.
$XRP
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