XRP finds itself under intense pressure following a major ETF debut, with the cryptocurrency forming a clear downward channel that has investors watching the $2.75 level closely.

Heavy Selling Follows XRP ETF Launch

One of 2025’s most volatile trading sessions saw XRP shed nearly 5% of its value, closing a chaotic day spurred by institutional sell-offs. At the center of the turmoil was the launch of the REX-Osprey ETF, which, despite being a milestone for XRP adoption, triggered a sell-the-news reaction. The token lost approximately $11 billion in market capitalization and is now perched precariously above the $2.77 support zone.

The newly launched U.S.-based XRP ETF posted an eye-catching $37.7 million in trading volume on its first day, making it the most active ETF debut of the year. While this demonstrated strong interest, it also coincided with large-scale unloading by major players in the market.

Investor Activity and Market Context

• Whale wallets shifted around $812 million worth of XRP between unidentified addresses, suggesting tactical repositioning or offloading.
• Liquidations surged to $1.7 billion in crypto derivatives, with long positions absorbing 90% of the losses.
• Meanwhile, macroeconomic signals changed course as U.S. inflation cooled to 2.18% in September, raising hopes for a Federal Reserve interest rate cut of 50 basis points before the year’s end.
• Bitcoin’s dominance surged to 57.7%, signaling a broader investor pivot away from altcoins like XRP amid market uncertainty.

Breakdown of XRP’s Price Action

Within just 24 hours—from 03:00 GMT on September 22 to 02:00 GMT on September 23—XRP dropped from $2.87 to $2.77, marking a 4.9% decline. A flash crash at 06:00 GMT drove the price downward on record-high volume — a staggering 656.1 million XRP traded, far exceeding the typical daily volume of 105 million.

Attempts at recovery fell short as resistance solidified at the $2.87 level. Although there was a short-lived bounce that took XRP up to $2.86 by 13:00 GMT, the rally was unsustainable. By late afternoon, the price consolidated within a tight $2.83–$2.87 zone before bears retook control. As the trading session drew to a close, XRP slipped from $2.85 back to $2.83, cutting short hopes of a swift rebound.

An intraday chart of XRP showing sharp declines amid heavy trading volume after ETF debut.

Bearish Signals Emerge on Technical Charts

From a technical standpoint, XRP remains vulnerable:

• Support levels: The key floor is at $2.77, especially significant given the flash crash bounce. A minor backstop also exists at the $2.82 mark.
• Resistance zones: Sellers are heavily concentrated near $2.87, reinforcing a pattern of lower highs indicative of a downtrend.
• Trading volume: The sharp uptick to 656.1M XRP confirms institutional participation in the selloff.
• Formation: Lower highs ($2.856) and sequential lower lows ($2.83) outline a short-term bearish channel.
• Outlook: Momentum favors bears, and if $2.82 gives way, XRP could head to the next downside targets between $2.75 and $2.70.

Key Questions for Market Participants

Investors remain watchful as XRP navigates critical support. Market reactions in the next few sessions may determine whether the digital asset stabilizes or slips further. Questions that traders are asking include:

Related: XRP Price: $12M Max Pain for Bears

• Will XRP hold above the $2.77 threshold during another test?
• Can REX-Osprey ETF flows help arrest the decline, or was the launch primarily a trigger for short-term profit-taking?
• How will large holders behave after moving $812 million worth of tokens?
• What role will the Fed’s next interest rate decision play in shaping liquidity across the crypto sector?
• Will Bitcoin’s rising dominance continue to siphon capital away from altcoins like XRP?

The path forward may come down to whether XRP regains investor confidence—and underlying support holds firm—or remains caught in a tightening bearish grip.