Ripple ETFs Debut on NYSE as XRP Struggles Below $2: A Case of Poor Timing?
Ripple ETFs Hit NYSE, Yet XRP Falls
Why Aren't Ripple's ETFs Lifting Prices?
Ripple is not lacking catalysts; it lacks investor conviction. On-chain data reveals that holders are selling on news rather than buying.
Is Timing the Issue for Ripple?
Compared to major cryptocurrencies like Ethereum, which have rebounded to pre-crash levels, Ripple is underperforming both on-chain and technically.
Zooming out, the undervaluation thesis for XRP gains traction. Even with new acquisitions and ETFs, Ripple's XRP is down 35% this quarter. For some, buying this dip could promise outsized returns. However, on-chain indicators tell a different tale. The XRP supply in profit has dropped to 57%, the lowest since November 2024, when XRP was $0.53. Clearly, HODLers are not buying into the current narrative.
Investor patience appears to be dwindling. With XRP hovering around $2, the 30-day EMA of daily realized losses has spiked to $75 million/day, the highest since April 2025, suggesting more investors are locking in losses. Yet, despite this bearish scenario, Franklin Templeton and Grayscale's Ripple ETFs have launched on the NYSE. Is Ripple hitting Wall Street at an unfortunate time?
Ripple's Wall Street Moment: Premature or Insufficient?
Investors are not viewing Ripple as undervalued. This highlights that Ripple's ETF launches are not failing due to broader market weakness but due to fading conviction. Simply put, the "hype" isn't translating into market demand. Therefore, the issue isn't "bad timing." The XRP ETFs didn't hit the market at an unfortunate moment; rather, the market isn't buying the narrative. Ripple's on-chain weakness is now reflected in the charts, with prices dipping below $2.
Indeed, the broader market is struggling, and many altcoins are losing support. However, Ripple's chart is particularly concerning. Unlike Ethereum, which reclaimed previous highs before the October drop, XRP hasn't approached a similar recovery since its July peak at $3.60. Essentially, XRP is lagging both on-chain and technically, and the ETF headlines aren't shifting the trend. So, even in a bullish macro environment, these ETFs may not significantly impact Ripple.