• ProShares’ leveraged XRP ETF will not debut on the 30th of April as previously expected. 
• Market data warned of a potential drop to $2 or below in May. 

Ripple [XRP] ETF has remained a hot topic, and the much-anticipated ProShares futures-based XRP ETF launch has added to the buzz.

Although most expected it to launch on the 30th of April, Bloomberg ETF analyst James Seyffart clarified that it would launch soon, but not this month. 

“We’ve confirmed that’s not the case. We don’t have a confirmed launch date yet, but we believe they will launch — and likely launch in the short or possibly medium term.”

If listed, ProShares products will join Teucrium in leveraged XRP ETFs in the U.S. 

With XPR CME futures also scheduled to launch in May, the odds for a likely U.S. spot XRP ETF approval have surged 10% over the past week.

Prediction site Polymarket placed a 78% chance of greenlight by the end of 2025. 

XRP ETF — Bad for traders?

Despite the bullish outlook on the ETF front, analytics firm Aphractal was cautious, drawing parallels to BTC ETF approval. There was a massive build-up of unliquidated longs around $2 and below. 

Aphractal noted that a similar scenario for BTC ETFs dragged BTC down $11K before bouncing back. 

For the unfamiliar, such massive liquidity, whether from long or short positions, tends to act as price magnets. As a result, an asset price could drop to these levels during liquidity-driven rallies. 

Simply put, the firm speculated a potential dip to $2 or below when any XRP ETF debuts soon. A similar sentiment was echoed in the options market.

According to Deribit, the top volume for XRP was a put option (bearish bet) for a $1.4 target by the 30th of May. 

The second most traded instrument was a call option (bullish bet) for $2.275 for the 30th of April. Put differently, large players were hedging against a potential decline below $2 next month. 

On the price chart, XRP defended the $2.1 short-term support but was yet to clear the downtrend. However, price action was above the 200DMA (Daily Moving Average).

This meant bulls were in a good place but could gain a better edge when they push above $2.4. 

Any sharp decline could be stopped at the $2.1, 200DMA, or $1.4 (a key November consolidation zone).