The cryptocurrency market is continuing to tumble as investors worry about risky assets, an AI and tech bubble, and a roughly 50% likelihood of the Federal Reserve cutting interest rates.
Closely watched digital asset XRP (XRP-USD) has fallen to $2.13 per token, a 26.55% drop from three months ago.
It previously hit a high of $3.65 in July, but the cryptocurrency has been trending significantly downwards since early October. This fall keeps XRP below the critical support/resistance level of $2.20.
XRP ETFs fail to boost price
There were moments of hope that the price would rebound with the recent launch of three XRP exchange-traded funds (ETFs). However, those hopes were soon dashed.
Take Canary XRP ETF, from Canary Capital, which launched on November 13. The fund (XRPC) opened at $26.63 that first day but has since fallen 10.85%. Binance News reports that “whales” sold 200 million XRP in the 48 hours following.
Blockchain company Ripple Labs is traditionally the largest owner of XRP, which is the native token of the XRP Ledger.
‘Profit-taking’ and the broader crypto slump
XRP is following a similar downward pattern to other cryptocurrencies, such as Bitcoin, the world’s most popular cryptocurrency.
Its price (BTC) also began to fall in early October and has made a sharp decline since early November. This week, it experienced a so-called death cross, which is when an asset’s short-term price momentum falls below its long-term trends.
As of publishing, Bitcoin sits at $91,577, a 13.26% drop from six months ago and an 18.12% drop from just one month ago.
“The selloff is a confluence of profit-taking by LTHs [longtime holders], institutional outflows, macro uncertainty, and leveraged longs getting wiped out,” Jake Kennis, senior research analyst at Nansen, said in a statement to CoinDesk this week. Profit-taking occurs when investors cash out to ensure a higher price, rather than hold a potentially declining asset.
While Bitcoin is still significantly up from a low of $74,436 in April, its gains for 2025 have been completely wiped out. It’s down roughly 2.14% year to date.