XRP Suffers ETF Hangover as Institutional Selling Drags Price Back Toward $2.77
XRP endured one of its heaviest sessions of 2025, sliding nearly 5% as large holders sold aggressively into the debut of the REX-Osprey ETF. The sharp reversal erased $11 billion in market value and left the token hovering just above key support at $2.77.
Market Context
- The first U.S. XRP ETF (REX-Osprey) launched with $37.7M in opening-day volume, the biggest ETF debut of 2025.
- On-chain trackers flagged $812M in whale transfers during the selloff.
- Crypto markets saw $1.7B in liquidations, with long positions accounting for 90%.
- Softer September CPI at 2.18% has markets pricing a 50 bps Fed cut before year-end.
- Bitcoin dominance jumped to 57.7%, reflecting capital rotation out of altcoins.
Price Action
- XRP fell from $2.87 to $2.77 in 24 hours, marking a 4.9% decline.
- A flash crash at 06:00 GMT triggered a $0.10 plunge on 656M volume — six times the daily average.
- Rebounds capped at $2.86, with repeated rejections at $2.87 reinforcing resistance.
- The session closed at $2.83, down 0.7% in the final hour.
Technical Signals
- Support: $2.77 remains the critical floor, with $2.82 eyed as a near-term pivot.
- Resistance: $2.87 marked as a heavy supply zone, with lower highs building a bearish channel.
- Trend: Short-term bias tilted lower, with risk of extension to $2.75–$2.70 if support cracks.
- Momentum: Indicators confirm downside pressure as volume spikes highlight institutional exit flows.
Key Watchpoints
- Can $2.77 support hold if tested again?
- Will second-day ETF flows stabilize sentiment or deepen sell-the-news pressure?
- Whale wallet positioning after $812M in transfers.
- Fed’s policy path and liquidity impact on risk assets.
- Ongoing rise in BTC dominance — weighing on altcoins.
