The XRP price remained under pressure on Friday, mirroring the performance of Bitcoin and other assets. Ripple dropped for four consecutive days, reaching its lowest level since November 10. It dropped even as the spot XRP ETF launched in the United States.
Canary XRP ETF had a strong debut
The XRP price remains in a deep bear market after plunging by almost 40% from its highest level this year. This decline happened even as the Securities and Exchange Commission (SEC) approved the Canary XRP ETF (XRPC).
The XRPC ETF had a strong debut, with the first-day volume of over $58 million. It also attracted millions of dollars in inflows as Wall Street placed a bet in the fourth-biggest coin in the crypto industry.
Most importantly, more XRP ETFs will be launched in the coming weeks now that many of them have been listed on the DTCC platform. This includes ETFs by companies like Bitwise, Franklin Templeton, Invesco, and 21Shares.
Why XRP price dropped after the ETF launch
The XRP price remained on edge for a few reasons. First, the decline was in line with the performance of the crypto market crash that saw Bitcoin and most altcoins plunge.
Bitcoin price plunged to $97,200, while Ethereum plunged by 10% in the last 24 hours to $3,125. Other top tokens like Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA). The total market cap of all coins dropped by over 5.4% in the last 24 hours to $3.26 trillion, meaning that investors have lost over $1 trillion this year.
The XRP price is crashing as a sense of fear prevails in the market. Data shows that the Crypto Fear and Greed Index has moved downwards to the fear zone of 22. The state of fear is demonstrated in the performance in the futures market.
Data shows that XRP’s futures open interest dropped to $3.65 billion, down from the year-to-date high of over $10 billion. Falling open interest is a sign that investors are using less leverage to bet on the coin. Historically, cryptocurrencies do well when the open interest is rising.
Another sign is the performance of the futures funding rate, which has remained flat in the past few weeks. It even moved downwards below zero on Friday.
A falling funding rate is normally a sign that investors in the futures market expect the token future price to be lower than the spot one. All this is happening because of the giant liquidation that happened on October 11 when tokens worth over $610 million were wiped out.
Ripple price death cross pattern
Technicals have contributed to the ongoing XRP price crash that has pushed it from a high of $3.66 in July to the current $2.29. It has continued to form a series of lower lows and lower highs as the downtrend continued.
Ripple price has now formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages have crossed each other.
The token remains below the Supertrend indicator and the Ichimoku cloud. Therefore, technicals suggest that the XRP price will continue falling as sellers target the next key support level at $2, which is much lower than the current level. A move above the resistance at $2.5 will invalidate the bearish outlook.
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