A new XRP ETF has entered the market, but the cryptocurrency is facing a tough time. On Thursday, 21Shares introduced its XRP ETF on the CBOE, marking another option for investors looking to diversify their crypto portfolios. This move comes as major altcoins like Ethereum and Solana are experiencing significant drops.
The new ETF aims to meet the growing demand for varied crypto exposure in the U. S. market. Federico Brokate, the global head of business development at 21Shares, highlighted that this ETF offers a direct way to invest in XRP and the broader Ripple ecosystem. To ensure security, the firm has partnered with Coinbase, Anchorage Digital Bank, and BitGo as custodians.
Several other issuers have also launched XRP funds recently, indicating a rapid expansion in the digital-asset product segment. XRP is known for its role in low-cost, cross-border transactions and has become a popular choice for investors seeking alternative layer-1 assets.
Despite the launch of the new ETF, XRP is not having a great day. It fell about 2. 5% on Thursday, while Ethereum and Solana saw even sharper declines of 5% and 4%, respectively. This drop is attributed to macroeconomic pressures and liquidity rotation, which have driven intraday volatility.
However, the interest in XRP ETFs remains strong. Since November, cumulative inflows have reached $954. 33 million, a substantial figure given the current market consolidation. Although daily inflows have slowed compared to early November, persistent net buying has helped absorb sell-side pressure during price weakness.
From a technical analysis perspective, XRP is trading within a large symmetrical triangle that has been forming since July. The token is currently near the lower support trendline, making the $1. 94 zone a critical area. Holding above this level keeps the structure intact and allows for a move back toward the mid-range.
The Bollinger Bands show that the price is hugging the lower band, often a sign of seller exhaustion during compression phases. If XRP defends the $1. 94 level, the next levels to watch are the mid-band at $2. 1 and the descending trendline at $2. 22 to $2. 28. A close above that band could open the path to $2. 35, where the Supertrend indicator flips. A bullish breakout above $2. 35 would shift market momentum and set up targets near $2. 9 to $3.
On the downside, a clean break below $1. 94 could expose the lower trendline around $1. 85 to $1. 88.
