The XRP price is crashing today even as the market prepares for a series of exchange-traded funds (ETF) approvals, which will happen as soon as today, Nov. 12. Ripple was trading at $2.4, down from this week’s high of $2.5690. It has plunged by 35% from its highest level this year.
XRP Price is Falling Ahead of ETF Listings
There are a few reasons why the XRP price is falling ahead of the upcoming ETF approvals by the Securities and Exchange Commission (SEC), which will happen as soon as today. Canary, a top player in the digital space, has already filed Form 8A, which is the final filing before a fund starts trading.
First, XRP price is crashing because of its correlation with Bitcoin and other altcoins that are all crashing. Even Zcash, which has been in an unstoppable bull run, has crashed by over 20% from its highest level this year.
Most notably, even Solana, Litecoin, and Hedera whose ETFs have started to trade, have continued falling in the past few days.. They all remain in a deep bear market after falling by over 20% from their local top.
Fear of Recent Liquidation Event Remains
Second, traders are afraid of buying XRP and other tokens because of the huge liquidation that happened a few weeks ago when 1.6 million traders were wiped out. XRP bulls suffered a $610 million wipeout.
Since then, activity in the futures market has waned substantially, a notable thing since this is usually the most active market in the crypto. XRP’s futures open interest has plunged to $3.3 billion, down from the July high of over $10.9 billion.
Most importantly, the closely-watched funding rate has remained flat in the past few weeks, a sign of how little activity is happening in the XRP market.
XRP funding rate has flatlined | Source: CoinGlass
Further, the XRP price is likely falling as investors sell the news since the ETF approval was always priced in. These odds rose after the SEC published the minimum listing standards for altcoins. These guidelines noted that tokens with active presence in the regulated futures market, of which XRP met the criteria.
Buy the rumor and sell the news is a common approach where an asset rises ahead of a major event and then crashes after it happens, as investors wait for the next catalyst. It partially explains why Solana and other tokens have fallen after their ETF listings.
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