XRP dropped 1.4% in Friday trading as the cryptocurrency continued its downward trend. Bitcoin fell 2.9% and Ethereum declined 1.7% during the same period.
The token has lost approximately 37% from its recent peak. Over the past week, XRP declined roughly 1% despite the launch of a new investment product.
The Canary XRP ETF began trading on Thursday. Many investors expected the exchange-traded fund to act as a bullish catalyst for the token.
With all due respect… @CanaryFunds is the little chicken of the $XRP ETF family.
While Franklin Templeton shows up with $1.5 TRILLION, Grayscale with $40B, Bitwise / ProShares / WisdomTree with billions…Canary: $200M.
Bullish for XRP? Absolutely. pic.twitter.com/kZtmPijvtU
— Arthur (@XrpArthur) November 14, 2025
However, the launch failed to generate sustained upward momentum. Some traders are now reducing their positions after the anticipated rally did not materialize.
The ETF structure requires issuers to hold physical XRP. This creates demand over time rather than immediate price spikes.
Early trading volume for the XRP ETF exceeded several established crypto ETFs. The first hours showed strong activity from investors seeking exposure without managing wallets or exchanges.
Settlement processes take time before ETF inflows translate into actual XRP purchases. Creation of new ETF shares must be balanced with token acquisition on the next business cycle.
This delay explains why XRP price remained stable during the initial launch period. ETF trading volume often reflects shares changing hands rather than direct token demand.
Investors continue moving away from higher-risk assets due to economic uncertainty. The Federal Reserve is scheduled to meet next month to decide on interest rates.
BREAKING
MARKET EXPECTATIONS FOR A DECEMBER FED RATE CUT JUST DROPPED OFF A CLIFF
ALL EYES NOW ON THE NEXT ODD SHIFT
pic.twitter.com/9bnWs1MWG3
— DustyBC Crypto (@TheDustyBC) November 14, 2025
Missing economic data has complicated rate cut predictions. The government shutdown stopped normal tracking of inflation and unemployment numbers.
This data gap increases uncertainty about whether the Fed will lower rates. Many crypto traders had bet on another rate cut.
Geopolitical tensions also affected market sentiment. A Chinese official warned Japan on Friday about military consequences if it intervened in a potential Taiwan conflict.
These combined pressures pushed investors toward safer assets. Speculative investments like cryptocurrencies faced selling pressure across the market.
The XRP token may respond gradually to ETF inflows rather than showing immediate gains. Real buying pressure from the fund appears after settlement cycles complete over days or weeks.
The post Why XRP Price Dropped 13% This Week? appeared first on CoinCentral.
