XRP News Today: XRP ETF's Debut Fails to Stem Price Collapse as Sellers Dominate

Bitcoin fell below $93,000 on Tuesday, erasing all its 2025 gains and deepening a year-end selloff that has rattled institutional investors and traders according to market analysis. The broader crypto market mirrored the decline, with XRP-a key altcoin-slumping 7% as the first U.S. spot XRP exchange-traded fund debuted. The ETF, Canary Capital's XRPC, generated $58.6 million in opening-day volume but failed to sustain upward momentum, underscoring fragile risk appetite amid macroeconomic uncertainty.

The XRP price collapse came after a failed breakout attempt at the $2.30 psychological level, triggering heavy institutional selling and a 342% spike in trading volume at 14:00 UTC. On-chain data revealed 110.5 million XRP tokens moved between unknown wallets during the selloff, amplifying volatility as derivatives markets reported $28 million in XRP liquidations over 24 hours, with long positions accounting for nearly 93% of the losses according to Coindesk data.

Bitcoin's technical indicators painted a similarly bleak picture. While the Relative Strength Index (RSI) briefly recovered to 34 on the daily chart, the Moving Average Convergence Divergence (MACD) indicator maintained a bearish signal, with its blue line remaining below the red signal line according to technical analysis. Ethereum, which trades near $3,200, also faces headwinds as its 50-day EMA crossed below the 100-day EMA-a "Death Cross" pattern historically associated with prolonged declines according to market analysis.

The XRP ETF's launch highlighted a paradox in crypto markets: institutional interest in regulated products coexists with speculative selling pressure. Despite the XRPC's robust debut, XRP's price action confirmed a structural breakdown, with sellers defending the $2.29–$2.30 support zone and former resistance levels at $2.36, $2.40, and $2.47 now acting as overhead barriers according to market data.

Market participants remain divided on the long-term outlook. While some predict XRP could finish 2025 above $3.50 and reach $5 by 2026 if institutional inflows persist, bearish sentiment dominates in the short term. Coinglass data showed $9.4 million in XRP spot outflows, extending a multi-week trend of distribution as traders trim exposure according to Coinglass analysis. Open interest in XRP derivatives rose 1% to $3.68 billion, but the long-short ratio of 0.96 signaled balanced positioning, with no aggressive directional bets according to market data.

As Bitcoin tests its 2025 lows, the crypto market's focus shifts to macroeconomic catalysts and ETF inflow sustainability. Traders will closely monitor the Federal Reserve's policy trajectory and institutional capital flows, which could determine whether the current correction evolves into a buying opportunity.