XRP Price Plunges 13%: Market Trends and Analysis

XRP fell 13% this week despite the Canary ETF launch.

ETF demand will impact XRP gradually, not immediately after trading begins.

Economic uncertainty and geopolitical tensions increased selling pressure across crypto markets.

Ripple’s XRP continued its downward trajectory, falling 1.4% on Friday alongside broader market losses. Bitcoin dropped 2.9% and Ethereum declined 1.7%, signaling widespread selling pressure. XRP has now shed around 37% from its recent peak, while the past week alone saw a roughly 1% drop despite the launch of a new investment product. Traders are watching closely as market forces and ETF developments collide.

Canary XRP ETF Launch Disappoints

The Canary XRP ETF started trading on Thursday, with high expectations among investors. Many hoped the ETF would provide a strong boost for XRP prices. Early trading volume exceeded several established crypto ETFs, indicating investor enthusiasm for exposure without managing wallets. However, the launch failed to generate immediate upward momentum. Traders have begun reducing positions after the anticipated rally did not appear.

The ETF requires issuers to hold physical XRP, creating gradual demand rather than instant price spikes. Settlement cycles play a significant role in delaying price effects. ETF inflows translate to actual XRP purchases only after shares are created and balanced on the next business day. Initial trading volume often reflects shares changing hands rather than direct token buying.

Economic and Political Pressures Affect Market Sentiment

Investors are moving away from higher-risk assets amid rising economic uncertainty. The Federal Reserve will meet next month to determine interest rates. Missing economic data, due to a recent government shutdown, has complicated rate cut predictions. Traders who anticipated another Fed reduction are now cautious.Geopolitical tensions added pressure this week. A Chinese official warned Japan about potential military consequences regarding Taiwan.

These warnings heightened risk concerns, prompting investors to favor safer assets. XRP faced notable selling pressure as speculative investments became less attractive. The combination of delayed ETF demand and macroeconomic uncertainty explains the muted performance. XRP’s token price may gradually respond to ETF inflows rather than show immediate gains. Real buying pressure emerges once settlement cycles are complete and fund purchases materialize.

Technical and market data suggest XRP may continue facing volatility in the near term. Traders remain cautious, balancing expectations for ETF-driven demand against ongoing macro pressures. While the Canary ETF provides a structural path for future buying, immediate recovery appears unlikely. Despite the 13% weekly drop, investor interest in XRP persists. ETFs offer a simpler way to gain exposure without holding physical tokens.

Analysts are monitoring both macroeconomic developments and ETF adoption to gauge XRP’s medium-term outlook. The market will likely remain reactive to news from both economic policy and ETF activity. XRP holders must weigh delayed demand from institutional inflows against ongoing selling pressure. Prices may stabilize gradually as ETF settlements complete and broader market uncertainty eases.