XRP experienced a significant downturn on one of its highest-volume trading days in 2025, plummeting nearly 5% as institutional investors sold into the debut of the REX-Osprey ETF.
This "sell-the-news" event wiped out approximately $11 billion in market capitalization, forcing the cryptocurrency to defend the crucial $2.77 support level.
Market Context
• The first U.S. XRP ETF (REX-Osprey) recorded a substantial $37.7 million in first-day volume, marking the largest ETF launch of the year.
• Large-scale investors transferred $812 million worth of XRP between unidentified wallets during the trading session.
• The crypto derivatives market witnessed $1.7 billion in liquidations, with long positions accounting for 90% of the total.
• Federal Reserve policy shift anticipated: September inflation cooled to 2.18%, with markets expecting a 50 basis point rate cut by year-end.
• Bitcoin's market dominance climbed to 57.7% as capital flowed out of alternative cryptocurrencies.
Price Movement Overview
• XRP's value declined from $2.87 to $2.77 over a 24-hour period (Sep 22 03:00–Sep 23 02:00 GMT), representing a 4.9% drop.
• A rapid sell-off at 06:00 GMT drove the price from $2.87 to $2.77 on trading volume of 656.1 million XRP, six times the daily average.
• The $2.87 level solidified as a strong resistance point following multiple failed breakout attempts.
• A recovery rally peaked at $2.86 by 13:00 GMT before losing momentum.
• The price consolidated between $2.83 and $2.87 during afternoon trading before bearish pressure resumed.
• A final decline in the last hour pushed XRP from $2.85 to $2.83, closing the session at $2.83.
Technical Perspective
• Support: The $2.77 level established during the flash crash serves as critical support; secondary support lies at $2.82.
• Resistance: Significant selling pressure exists at $2.87, with lower highs forming a bearish channel pattern.
• Volume: The 656.1 million volume spike during the crash versus the 105 million average confirms substantial institutional selling.
• Trend: The formation of lower highs at $2.856 and lower lows at $2.83 confirms a short-term downtrend.
• Indicators: Momentum indicators point to bearish sentiment, with potential for further decline toward $2.75-$2.70 if $2.82 support fails.
Market Focus Points
• Sustainability of the $2.77 support level following the initial test.
• ETF flow monitoring: Will secondary trading day demand stabilize prices or confirm the sell-off pattern?
• Tracking large wallet movements after the $812 million transfer activity.
• Federal Reserve interest rate decisions and their impact on market liquidity.
• Bitcoin's 57.7% market dominance potentially maintaining pressure on altcoin performance.