XRP Price Tanks Despite First Spot ETF Approval in Canada - Here's Why

Hold onto your hats, folks, because XRP is on a wild ride! Despite getting the green light for its first spot ETF in Canada, the token's price just kept on sliding for the second day straight. Talk about a rollercoaster!

Get this: Purpose Investments, those savvy asset managers, got the final nod from Canadian bigwigs to launch the nation's very first spot XRP ETF. And guess what? Trading kicks off this Wednesday, June 18, right on the Toronto Stock Exchange, under the ticker XRPP. Exciting stuff, right?

But hold up, because even with this big win for Canadian investors, XRP just couldn't catch a break. The token stayed under the pump, dropping a hefty 3.4% in the last 24 hours, hitting $2.17. Ouch! That knocked its market cap down to $127 billion. Not the news XRP fans wanted to hear.

And it's not just XRP feeling the heat. The whole crypto market took a hit, with a 3.6% drop in the last day. Bitcoin and other big players were sliding too, all thanks to some seriously weak vibes across the board.

So, what's behind this crypto carnage? Well, buckle up, because it's a bumpy ride. Geopolitical tensions in the Middle East are cranking up, and everyone's on edge about the U.S. Federal Reserve's next move on interest rates. With inflation fears on the rise, hopes of quick rate cuts are fading fast, sending a risk-off chill through financial markets. Brrr!

But don't count XRP out just yet, because some seriously bullish stuff is brewing.

Check this out: in the SEC v. Ripple case, both sides just agreed to a massive $50 million settlement. If the judge gives it the thumbs up, it could finally put an end to the legal drama that's been holding XRP back. That's huge for its regulatory clarity and could open the floodgates for wider adoption.

And get this: former CFTC Chair Chris Giancarlo, the bigwig from the Trump days, just floated the idea of issuing government bonds for crypto assets like Bitcoin and XRP. He dropped this bombshell at the XRPL Apex 2025 conference in Singapore, hinting at a major policy shift that could bring more regulated crypto finance to the party.

Meanwhile, Ripple's not sitting still. They're gearing up to launch their RLUSD stablecoin, a game-changer for their ecosystem. And they're not stopping there - Ripple's been busy making friends with regulators in crypto hubs like Dubai and Singapore, setting the stage for XRP to shine in cross-border payments.

Now, let's talk tech. XRP's been busy forming a multi-month bull pennant on the 1-week/USDT chart. And you know what that means - a breakout could be on the cards, with a price target of $4.61. That's a mind-blowing 114% gain from where we're at now!

Technical analyst Mikybull Crypto's got our backs, drawing parallels with XRP's 2017 chart action. Back then, a similar bull pennant breakout kicked off a rally of over 1,300%, hitting all-time highs near $3.40. Could history repeat itself?

But it's not all sunshine and rainbows. Momentum indicators are sending mixed signals. On the weekly chart, we've got a golden cross, with the 50-day SMA crossing above the 200-day SMA. That's usually a bullish sign, hinting at a trend continuation.

But zoom in to the daily chart, and things get a bit gloomier. The 200-day SMA just crossed above the 50-day SMA, forming a dreaded death cross. That's a bearish reversal signal, and when you throw in the MACD and RSI both trending down, it's a recipe for short-term downside risks.

And if that wasn't enough, investor uncertainty just got cranked up a notch. The SEC delayed its decision on Franklin Templeton's proposed spot XRP ETF, pushing the review into late July. With the whole market on edge, it's no wonder XRP's been underperforming.

So, what's next for XRP? If it can't hold onto that key $2.00 support level, we could be looking at a slide down to $1.62, the low from April 2025, before any real bounce-back. But if XRP can stand its ground and break above the pennant's resistance, the bullish scenario could be back on, paving the way for a shot at those cycle highs.

Disclosure: This article is for your education, not investment advice. So, buckle up and enjoy the ride, but always do your own research before diving in!