XRP experienced a sharp 6% pullback as a recent drop in Bitcoin dampened bullish sentiment throughout the cryptocurrency market. The downturn, which saw XRP retracing from recent highs, led to increased selling pressure from institutional players and signaled renewed caution among traders.

Heavy Sell-Off Snaps XRP’s Surge

XRP’s rally above the $2.90 threshold came to an abrupt halt on September 25, with a substantial increase in trading volume sparking a swift decline. A $277 million spike in volume triggered a selloff that dragged the token down to $2.75, wiping out over $18 billion in market capitalization within a week and establishing strong resistance at the $2.80 mark.

Market Snapshot and Recent Developments

• Between September 25 and 26, XRP tumbled nearly 5.83%, slipping from $2.92 to $2.75 as institutional selling intensified.
• A dramatic rejection at $2.80 during the 17:00 hour pushed volume to nearly 277 million — over double the daily average.
• Despite the U.S. Securities and Exchange Commission (SEC) clearing the path for the first XRP ETF, macroeconomic concerns and Federal Reserve Chair Jerome Powell’s comments on overvalued markets weighed heavily on investor confidence.
• XRP’s market cap has dropped by $18.94 billion in just one week, falling back below the significant $3.00 psychological barrier.

Intraday Price Movements and Resistance Buildup

During the 24-hour session, XRP ranged between $2.92 and $2.74 — a 6.3% fluctuation — before closing close to $2.75.

• Sellers exerted strong influence right after the $2.80 level was rejected, forming a distribution zone that limited any upward momentum.
• Subsequent bounce attempts met resistance near $2.81 to $2.82, solidifying this region as a hurdle.
• A minor rebound occurred during the final trading hour, with XRP climbing by 1.09% from $2.75 to $2.78, propelled by brief but intense trading between 00:50 and 00:57, where volume surged past 3 million tokens per minute.

Continued support appears to lie between $2.75 and $2.77; however, a breach could leave XRP vulnerable to further declines toward the $2.70 level.

Technicals Suggest Consolidation Phase

• XRP demonstrated a trading spread of $0.18, or 6.3%, between its high and low.
• Rejection at $2.80 marked a short-term ceiling, while selling pressure worsened at the $2.81–$2.82 resistance cluster.
• Despite defending the $2.75 mark late in the session, traders increasingly eye the $2.70 psychological level as a critical test.
• The 17:00 spike of 276.77 million in trading volume contrasted sharply with the 108.42 million daily average.
• Current chart patterns indicate a transition into a period of consolidation near $2.77, reflecting market indecisiveness.

Trading chart illustrating XRP’s fall from $2.92 to $2.75 amid increased volume.

Key Factors on Traders’ Radar

Market participants are closely monitoring multiple factors that will likely influence XRP’s short-term trajectory:

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

• Whether XRP can sustain its hold above the $2.75 level during the upcoming Asia trading session or revisits the $2.70 zone.
• A possible “sell the news” reaction following positive XRP ETF developments, as capital outflows overshadow long-term optimism.
• Whale activity remains under watch after $800 million in large-volume transactions this past week — a renewed wave of selling could intensify downside risks.
• Broader macroeconomic headwinds, particularly Powell’s hawkish tone on interest rates and climbing Treasury yields, are muting expectations of a dovish Fed pivot in the near term.

Traders remain cautious, balancing optimism from regulatory advancements with growing macroeconomic pressure, as XRP’s direction hinges on whether critical support levels can hold.