- XRP crashed 10% in the 24 hours after its first U.S. Spot ETF (XRPC) went live, dropping from a high of $2.52 to $2.28.
- An analyst has identified this as a textbook “Sell the News” event, where savvy traders who “bought the rumor” sold their positions to retail traders who bought the confirmation.
- The analyst noted that the market moves before the headlines, implying that pre-scheduled, “known outcome” events are often priced in by major players.
XRP’s 10% price decline in the past 24 hours is being analyzed as a textbook example of a “Sell the News” trading strategy. In a post on X, an analyst noted the 10% crash occurred after the first spot XRP ETF went live in the U.S.
For context, XRP faced significant, immediate selling pressure shortly after Canary Capital launched its spot XRP ETF (XRPC) on the Nasdaq on Thursday, November 13.
Related: First XRP ETF (XRPC) Launched, Now MOG ETF Filed: Canary Capital’s Aggressive New Strategy
The “Textbook Trap”: Why Anticipation Beat Confirmation
The analyst emphasized the market axiom that the “market moves before the headlines.” This implies that sophisticated traders build positions in anticipation of an event, not upon the event itself. In contrast, retail traders who wait for the confirmation of the news often “take the hit” from the reversing trend, the analyst stated.
Typically, notable developments trigger volatility. However, the analyst’s pronouncement suggests that pre-scheduled events with likely known outcomes can have a contradictory effect, as traders have already factored that outcome into their earlier decisions. This is distinct from sudden, unexpected events that take the market by surprise.
The $2.52 Reversal: How the Bullish Catalyst Failed
In the case of the XRP ETF, the prevailing retail belief was that the launch would open a new institutional demand channel, triggering a price surge. The market, however, saw the exact opposite.
TradingView’s data reveals that XRP gave away all the gains from the early hours of Thursday, reversing from a $2.52 daily high amid a pullback that has seen the cryptocurrency trade for $2.28 at the time of writing.
In the meantime, most XRP users believe the recent pullback is a temporary move that will provide opportunities to purchase the cryptocurrency at a more affordable price. The potential approval of multiple ETFs by the SEC could prove a significant turning point for a more sustainable uptrend for XRP in the future.
Related: 11 XRP ETF Listings Surface on DTCC—But How Close Are They to Launch?
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