- XRP price is poised for an extended correction below the $2 support, as the technical chart shows a bearish reversal within a wedge pattern.
- 21Shares introduced a new XRP-linked exchange-traded product on the Cboe BZX under the ticker TOXR.
- The 50-day EMA slope acts as dynamic resistance against crypto buyers in the ongoing correction trend.
The crypto market witnessed notable selling pressure on Thursday amid a disappointing number of U.S. jobless claims. While a majority of major assets witnessed intraday sell-off, the XRP price managed to hold its $2 psychological level with a long-tail rejection candle. The bottom demand can be attributed to the newly launched 21Shares XRP ETF (TOXR) on CBOE.
21Shares Launches XRP ETP ‘TOXR’ on Cboe BZX
21Shares has begun trading a new exchange-traded product on Cboe BZX that provides exposure to the price of XRP under the ticker TOXR. The product started trading today and has an annual fee of 0.30%. It tracks the market price of XRP without the investors in XRP holding the cryptocurrency directly.
Unlike traditional stock and bond ETFs, TOXR is not subject to the 1940 Investment Company Act, which means that it does not have some of the investor protections that registered funds have. The underlying asset can have dramatic price fluctuations, and the issuer states that the product may lead to a complete loss of capital.
The XRP held by the trust is spread out across three different custodians (Coinbase Custody, Anchorage Digital, and BitGo) to mitigate any single point of failure risks. Flow Traders acts as the main market maker that is responsible for keeping markets liquid on the exchange.
This is the sixth crypto product that is listed on that scoreboard from U.S.-based 21Shares since the firm began offering such vehicles in the country in 2022. The Swiss-based issuer currently manages over $8 billion in its entire array of cryptocurrency exchange-traded products around the world.
The new listing brings to mind the list of growing single-asset crypto products from the U.S.-regulated crypto exchanges, after the previous stamp of approvals for Bitcoin and Ether vehicles. XRP, developed by Ripple Labs, is mainly used for cross-border transfers and settlement via the Ripple payment protocol.
XRP Price Risks $2 Breakdown Amid Key Reversal Within Wedge Pattern
In the last 3 days, the XRP price has briefly retraced from $2.17 to the current trading price of $2.03, registering a loss of 6.67%. The pullback follows broader market uncertainty amid the macroeconomic jitters, including the 25-basis-point Fed rate cut and higher-than-expected jobless claims.
Interestingly, the bearish reversal is positioned at the resistant trendline of a fresh-falling wedge pattern in the daily timeframe chart. Since early October, the coin price has been actively resonating between two converging trendlines, which offer dynamic resistance and support to crypto traders.
Typically, a retest of the pattern’s upper boundary recuperated the bearish momentum in price for a fresh bear cycle within the channel structure. If history repeats and the XRP price breaks below $2 support, the current correction could extend another 12% and retest the bottom trendline at $1.74.
The momentum indicator RSI at 41% accentuates the bearish sentiments in the market, reinforcing the potential downturn in XRP.
On the contrary, if the coin price manages to flip the overhead trendline into a potential support, the buyers could restrengthen their grip over this asset for a potential surge towards the $2.4 mark.
Also Read: Ethereum Price Awaits Key Support Retest as Volatility Rises Around $3,300
