ETF-Driven Selloff Pushes XRP Into Downtrend Channel, Analysts Eye $2.75 as Next Key Level

XRP Slides as Institutional Selling Overwhelms ETF Debut Hype, Bears Target $2.75

XRP faced its steepest single-day decline of 2025, dropping nearly 5% as institutional selling eclipsed optimism from the REX-Osprey ETF’s record-breaking launch. The move wiped out more than $11 billion in market capitalization and left the token precariously above $2.77 support.

Background

The inaugural U.S. XRP ETF (REX-Osprey) set a new benchmark with $37.7M day-one trading volume, the largest ETF debut this year.
Whale wallets shuffled $812M in XRP across unknown addresses during the selloff.
Derivatives markets registered $1.7B in liquidations, with 90% from longs.
September CPI cooled to 2.18%, reinforcing bets on a 50 bps Fed rate cut before year-end.
Bitcoin dominance surged to 57.7%, signaling capital rotation out of altcoins.

Price Action

Between Sept. 22 (03:00 GMT) and Sept. 23 (02:00 GMT), XRP slid from $2.87 to $2.77, a 4.9% decline across a $0.14 band.
A flash crash at 06:00 GMT drove prices from $2.87 to $2.77 on 656.1M volume (6x daily average).
Repeated rejections reinforced $2.87 as resistance.
Rebound attempts capped at $2.86, with afternoon trade consolidating between $2.83–$2.87.
In the final hour, XRP slipped from $2.85 to $2.83, closing the session down 0.7%.

Technical Picture

Support: Flash-crash floor at $2.77; $2.82 flagged for near-term retest.
Resistance: Heavy selling at $2.87, with lower highs carving a bearish channel.
Volume: Elevated turnover confirms institutional exit flows.
Trend: Downward momentum, with risk of extension toward $2.75–$2.70 if $2.82 breaks.
Indicators: Momentum skewing bearish, confirming short-term pressure.