Why Is XRP Up Today? Teucrium's 2x ETF And Rebound In Risk Appetite Spark Rally

XRP XRP/USD surged more than 11% Tuesday to trade at $1.95, clawing back losses from Monday's tariff-driven sell-off as optimism over potential U.S. trade negotiations lifted sentiment across risk assets. 

The rally also comes as Teucrium Investment Advisors launched the first-ever leveraged XRP ETF on the NYSE Arca exchange, giving investors 2x daily exposure to the token's price moves.

XRP has shed nearly 12% over the last month, but Tuesday's relief rally—fueled by both macro news and a milestone in crypto investment products—marked its sharpest single-day gain since February.

ETF Launch Adds Fuel to XRP Recovery

The debut of the Teucrium 2x Long Daily XRP ETF (XXRP) marks an achievement for XRP investors. It is the first XRP-focused exchange-traded fund in the U.S., arriving before a standard "spot" XRP ETF has received regulatory approval—an uncommon path for crypto-linked funds.

"Very odd (maybe a first) that a new asset's first ETF is leveraged," Bloomberg Intelligence analyst Eric Balchunas said on X. "Spot XRP still not approved, although our odds are pretty high."

The fund, which charges a 1.85% management fee, gives traders the ability to amplify their exposure to XRP's daily moves. According to Teucrium, the fund is designed for investors with short-term, high-conviction views on the asset. 

However, the company cautioned that XRP's volatility and declining usage on the Ripple network could challenge the product's performance.

A Macro Tailwind: Market Hopes for Tariff Relief

Tuesday's rally in XRP mirrored a broader risk-on rebound in global markets. The Dow Jones Industrial Average surged more than 1,000 points, while the S&P 500 and Nasdaq each jumped over 2.5%, recouping some of the steep losses suffered in recent days.

President Donald Trump hinted at progress on the trade front, noting he had a "great call" with South Korea's acting president and that China "wants to make a deal badly." Treasury Secretary Scott Bessent added that nearly 70 countries have reached out to begin negotiations. "If they come to the table with solid proposals, I think we can end up with some good deals," Bessent told CNBC. "And part of the calculus of that may be that some part of the tariffs stay on."

Markets interpreted the comments as a possible softening in tone from Washington, triggering a short-term bounce in equities and crypto alike.

Technical Outlook: Key Resistance in Sight

XRP's price action is now approaching an important technical zone near $2.00. The token broke through its descending trendline at $1.77 on strong volume, a level that previously marked a bearish head-and-shoulders breakdown. 

If XRP can reclaim the $2.00–$2.01 range, it could invalidate the prior bearish formation and reestablish an upward trajectory.

Failure to break above resistance may result in consolidation, with $1.85 acting as initial support. Should momentum continue, analysts will eye the March highs near $2.25 as the next potential upside target.

The Road Ahead

While Tuesday's gains reflect a broader relief rally, the outlook for XRP remains tethered to both macroeconomic sentiment and regulatory developments. The launch of a leveraged ETF suggests rising interest from institutional traders, even as retail adoption and usage of RippleNet show signs of decline.

Price volatility is likely to remain elevated in the coming weeks as markets digest potential tariff negotiations and additional economic data. Still, with fresh investor access through the XXRP fund and a possible trade détente on the horizon, XRP could see renewed interest—at least in the short term.

XRP Price Predictions for April 9, 2025

As always, investors are encouraged to monitor key support and resistance levels, stay alert to macro headlines, and manage risk accordingly. While volatility remains high, the tides may be shifting for XRP—for now.