Ripple’s XRP has dropped to $0.52, its lowest point in weeks, as traders shift focus to the SEC’s approval of spot Ethereum ETFs. The sudden move shows how major regulatory events can shake the balance between top cryptocurrencies, even when they don’t directly involve XRP.
At BTCRepublic, we reviewed the market data, on-chain activity, and investor sentiment following the SEC’s decision. The timing is clear: while Ethereum gained attention from institutional investors, XRP faced short-term selling pressure as traders rotated funds into ETH ahead of its ETF launch.
This article breaks down why XRP fell, how Ethereum’s ETF approval triggered a wider market reaction, and what it means for altcoin investors looking ahead. Whether you hold XRP or watch the crypto market closely, understanding these shifts can help you read the next move before it happens.
- Key Takeaways
- Facts & Original Research: How the Ethereum ETF Approval Impacted XRP
- What Happened and Why XRP Fell?
- Ripple (XRP) Price Chart
- Coinbase Lists XRP In New York
- How Ethereum ETF Approval May Impact XRP and Other Altcoins
- Short-Term Effect: Capital Rotation
- Medium-Term Impact: Market Rebalancing
- Long-Term View: Institutional Attention
- On-Chain and Technical Analysis for XRP
- Risks and Things to Avoid
- 1. Breaking Below $0.52 Support
- 2. Overreaction to Ethereum ETF Hype
- 3. Unresolved Regulatory Pressure
- 4. Mistaking Rotation for Rejection
- Conclusion
- Frequently Asked Questions (FAQs)
Key Takeaways
| Insight | Summary |
| 1. XRP dropped to $0.52 amid Ethereum ETF news | Ripple’s token fell over 8% in 24 hours as traders shifted capital toward Ethereum following the SEC’s ETF approval. |
| 2. Market rotation played a major role | Investors redirected funds from altcoins like XRP into ETH, expecting stronger short-term performance ahead of ETF trading. |
| 3. Ethereum ETFs gained institutional spotlight | The SEC approved eight spot Ether ETFs, drawing attention and liquidity away from secondary crypto assets. |
| 4. XRP remains in a key support zone | Around 167 million XRP moved off exchanges, reducing selling pressure and hinting at long-term holding behaviour. |
| 5. Exchange reserves fell sharply | Around 167 million XRP moved off exchanges, reducing selling pressure and hinting at long-term holding behavior. |
| 6. XRP’s fundamentals remain intact | Despite price pressure, Ripple continues expanding in payments and partnerships, which could support a rebound once ETF excitement cools. |
| 7. Lesson for investors | Market reactions often reflect capital rotation, not collapse — understanding these cycles helps investors avoid panic and spot recovery zones. |
Facts & Original Research: How the Ethereum ETF Approval Impacted XRP
The approval of spot Ethereum ETFs by the U.S. SEC on May 23, 2025, triggered an immediate shift in crypto market sentiment. While Ethereum surged in anticipation of institutional inflows, Ripple’s XRP slipped to around $0.52, reflecting short-term capital rotation and investor repositioning.
Key Market Facts
| Metric | Data / Source | Meaning |
| XRP Price Drop | Fell ~8% to $0.52 within 24 hours of the SEC approval (CoinMarketCap, May 2025) | Short-term volatility tied to Ethereum-driven market rotation. |
| Ethereum ETFs Approved | 8 spot ETFs, including BlackRock, Fidelity, VanEck, and Grayscale | Institutional capital redirected toward ETH exposure. |
| Exchange Reserves | 167 million XRP moved off exchanges (CryptoQuant Data) | Indicates reduced sell pressure and potential long-term accumulation. |
| Whale Activity | Large wallets increased holdings around $0.52 support (Santiment Analytics) | Suggests confidence among high-value investors. |
| Altcoin Market Performance | Down 4–6% on average | ETF-driven attention favored ETH and BTC, not smaller assets. |
What Happened and Why XRP Fell?
After the SEC approved spot Ethereum ETFs on May 23, 2025, traders quickly shifted focus and capital toward Ethereum. Within hours, XRP’s price dropped to $0.52, falling nearly 8% in a single trading session.
The move wasn’t caused by negative Ripple news — it was a market rotation reaction. When Ethereum gained institutional attention through ETF approval, investors temporarily pulled money from other altcoins like XRP and Cardano to take advantage of ETH’s anticipated inflows.
Technical traders also contributed to the drop. XRP lost its short-term support near $0.55, triggering stop-loss orders and accelerating the decline. However, large on-chain wallets began accumulating around $0.52, showing that long-term investors saw value at this level.
In simple terms, the sell-off reflected a shift in attention and liquidity, not a loss of confidence in Ripple’s fundamentals or technology. XRP remains one of the most established digital assets in global payments.
Ripple (XRP) Price Chart
The current price drop signals a bearish sentiment driven by the overall lack of buyer interest across the cryptocurrency market.
The Relative Strength Index (RSI) at 42 signals towards selling activity. If sellers continue outperforming buyers, XRP will likely drop to $0.50. XRP tested this crucial support level briefly before bouncing back.
A closer look at the RSI line shows that it is pointing north. As such, $0.52 might be a good entry point for XRP.
The Moving Average Convergence Divergence (MACD) line also paints a bearish picture by being below the signal line. The MACD histogram bars are also negative, and if bulls fail to regain control, a drop to $0.50 is highly likely.
Coinbase Lists XRP In New York
On May 23, XRP posted a brief jump to $0.54 on May 23 on news that US exchange giant Coinbase has relisted XRP for trading in New York. According to Grewal, the listing happened after a collaboration between the state and the exchange.
Coinbase Ripple’s native token (XRP) for US customers in 2019. However, after the SEC sued Ripple and its executives in 2020, the exchange delisted the token.
Coinbase later reinstated XRP after a court ruled that the secondary sale of XRP does not constitute securities trading. However, XRP’s trading was never reinstated for New York customers because of the state’s stringent crypto rules.
The case between Ripple and the SEC is ongoing, raising speculation over whether a spot XRP ETF might be next.
How Ethereum ETF Approval May Impact XRP and Other Altcoins
The SEC’s decision to approve spot Ethereum ETFs didn’t just lift ETH — it also reshaped how investors allocate capital across the broader crypto market. When a top-tier asset like Ethereum gains regulatory recognition, liquidity naturally concentrates in that asset, often at the expense of smaller-cap tokens such as XRP, ADA, and SOL.
Short-Term Effect: Capital Rotation
Investors view Ethereum ETFs as a “safer” institutional gateway into crypto. As funds prepare to buy ETH through regulated products, traders temporarily withdraw liquidity from altcoins to ride the initial wave. This shift explains XRP’s brief drop to $0.52, as volume and sentiment favoured ETH.
Medium-Term Impact: Market Rebalancing
Once ETF excitement levels off, capital tends to flow back into altcoins that have stronger fundamentals or undervalued setups. XRP, with its established use case in cross-border payments, could attract returning interest as investors rebalance diversified portfolios.
Long-Term View: Institutional Attention
Ethereum’s approval could set a precedent for broader crypto regulation. As institutional acceptance spreads, it may eventually benefit assets like XRP, positioning them as legitimate digital payment tools in a regulated environment.
On-Chain and Technical Analysis for XRP
Even though XRP fell to $0.52, market data shows signals that could point toward stabilisation and potential recovery once the ETF-driven volatility settles.
Technical Overview
- Support Zone: The key support sits between $0.50–$0.52. Price briefly touched this range but bounced slightly, confirming it as a strong accumulation area.
- Resistance Levels: The next resistance is at $0.56, followed by a psychological barrier at $0.60. A daily close above $0.56 could trigger short-term bullish momentum.
- Relative Strength Index (RSI): Hovering near 38–40, suggesting XRP is close to oversold territory — historically a point where long-term buyers start to enter.
On-Chain Signals
| Indicator | Recent Data | Interpretation |
| Exchange Reserves | Down 167M XRP this week | Fewer coins on exchanges mean less selling pressure. |
| Whale Wallets (≥10M XRP) | Added +90M XRP during dip (Santiment) | Large holders are accumulating, signaling confidence. |
| Funding Rate (Futures) | Neutral to slightly positive | Balanced market sentiment — no extreme shorting pressure. |
Checklist for Traders
- Watch for higher trading volume near $0.55 to confirm strength.
- Monitor exchange outflows — sustained withdrawals often precede rebounds.
- Keep an eye on Bitcoin and Ethereum trends; continued ETF hype could delay XRP’s recovery.
Risks and Things to Avoid
While XRP’s price drop looks temporary, investors should still approach the market carefully — especially during ETF-driven volatility phases. Here are the key risks and pitfalls to stay alert for:
1. Breaking Below $0.52 Support
If XRP loses its current support, the price could test lower zones near $0.50 or $0.48. A strong close below $0.52 would signal a potential continuation of short-term bearish momentum.
2. Overreaction to Ethereum ETF Hype
Ethereum’s ETF approval has dominated the headlines. Many traders moved capital toward ETH out of excitement, but over-focusing on one asset often leads to missing altcoin recovery phases later.
3. Unresolved Regulatory Pressure
Ripple’s ongoing case with the SEC is still under review. Any negative development could amplify short-term volatility or trigger further corrections.
4. Mistaking Rotation for Rejection
This dip isn’t a fundamental rejection of XRP — it’s liquidity rotation. Confusing short-term sentiment shifts with long-term value changes can lead to emotional trading.
Conclusion
The recent drop in Ripple’s XRP to $0.52 came at the exact moment the U.S. SEC approved spot Ethereum ETFs, highlighting how tightly connected the crypto market has become. As investors moved funds toward Ethereum to catch early ETF momentum, XRP and other altcoins experienced short-term pullbacks — a familiar pattern during major regulatory shifts.
However, the fundamentals behind XRP remain solid. On-chain data shows long-term holders accumulating, exchange reserves falling, and strong technical support near the current level. Once ETF hype around Ethereum stabilises, capital rotation back into undervalued assets like XRP is likely.
For traders, this phase is less about panic and more about positioning. As crypto adoption grows through regulated ETFs, assets with real utility — such as XRP — are set to benefit from the expanding confidence in digital finance.
Stay connected with BTCRepublic for daily analysis, Ethereum ETF updates, and XRP’s recovery insights.
Frequently Asked Questions (FAQs)
Why did XRP drop after the SEC approved Ethereum ETFs?
The approval of spot Ethereum ETFs led many investors to move their capital into ETH, expecting stronger short-term gains. This liquidity shift temporarily reduced demand for altcoins like XRP, causing its price to fall to around $0.52.
Does Ethereum’s ETF approval hurt XRP long-term?
Not directly. The drop reflects short-term capital rotation, not a loss of confidence. In the long run, the ETF approval strengthens the entire crypto market by increasing regulatory trust and investor participation, which could benefit XRP as well.
Is $0.52 a strong support level for XRP?
Yes. Historical data shows that $0.50–$0.52 has acted as a major support zone multiple times. On-chain analysis also indicates whale accumulation in this range, suggesting potential price stabilisation.
Can XRP rebound once Ethereum ETF hype fades?
Very likely. When markets rebalance after major ETF launches, altcoins with real-world utility, like XRP’s payment solutions, often recover as traders diversify beyond top assets.
How can I track XRP’s next move?
Use analytics platforms like TradingView, CryptoQuant, and Santiment to monitor whale movements, reserve changes, and RSI levels. You can also follow BTCRepublic for expert commentary and daily XRP market coverage.
