In a dramatic turn of events, XRP endured a tumultuous trading session, marking one of its most volatile days in 2025. The digital asset faced a steep decline, plummeting nearly 5% as institutional investors offloaded their holdings during the debut of the REX-Osprey ETF. This sell-the-news scenario wiped out a staggering $11 billion from XRP’s market value and left the token clinging to the crucial $2.77 support level.
ETF Debut Sparks Market Turbulence
The launch of the REX-Osprey ETF was a highly anticipated event, touted as a milestone for XRP’s adoption in mainstream finance. With a record-breaking first-day trading volume of $37.7 million, it was the largest ETF launch of the year. However, the fanfare quickly turned into a frenzy as investors opted to sell on the news, leading to a significant market correction.
Large whale wallets, which moved $812 million in tokens between unknown addresses, added to the volatility. The crypto derivatives market also felt the heat, experiencing $1.7 billion in liquidations, predominantly from long positions. The ripple effect of these movements was felt across the market, with Bitcoin’s dominance rising to 57.7% as investors rotated capital away from altcoins like XRP.
Price Action and Technical Dynamics
XRP’s price action was nothing short of a rollercoaster. The token crashed from $2.87 to $2.77 within 24 hours, a 4.9% decline over a tight $0.14 range. A flash crash at 06:00 GMT saw the price dive from $2.87 to $2.77 on an overwhelming volume of 656.1 million, which was six times the daily average of 105 million. Despite a brief recovery peaking at $2.86, the price faltered, consolidating in the $2.83–$2.87 range before sellers regained control, closing the day at $2.83.
The technical landscape paints a bearish picture for XRP. The token is navigating a downtrend channel, with lower highs forming at $2.856 and lower lows at $2.83. The critical support level at $2.77 is under scrutiny, with a secondary support at $2.82 likely to be retested. The heavy resistance at $2.87 suggests a robust supply zone, making it a formidable barrier for any recovery attempts.
Market Sentiment and Trader Outlook
As traders dissect the day’s events, several key questions loom large. Can the $2.77 support withstand another test following the flash crash? The behavior of whale wallets, which played a significant role in the day’s volatility, will be closely monitored for any signs of further large-scale moves.
The ETF flows remain a focal point. Market participants are keen to see if day-two demand can stabilize XRP’s price or if it will confirm the sell-the-news phenomenon. With the Federal Reserve’s potential policy pivot, including a 50 basis points interest rate cut anticipated before year-end, the macroeconomic backdrop could influence dollar liquidity and, by extension, cryptocurrency markets.
Bitcoin’s rising dominance poses another challenge for altcoins like XRP. With BTC commanding 57.7% of the market, the rotation of capital away from altcoins may continue, exerting further pressure on XRP’s price.
A Balancing Act Amid Uncertainty
While the immediate outlook for XRP seems bearish, it’s essential to consider the broader context. The ETF launch, despite its initial impact, represents a significant step toward institutional acceptance and could pave the way for future growth. However, market participants must navigate the near-term challenges posed by shifting sentiment and macroeconomic factors.
For now, XRP’s trajectory hinges on its ability to maintain critical support levels and weather the storm of institutional sell-offs. As traders and investors brace for the next chapter in this unfolding story, the coming days will be crucial in determining whether XRP can stabilize or if further declines are on the horizon.
In conclusion, XRP’s recent performance underscores the inherent volatility and unpredictability of the cryptocurrency market. As the landscape continues to evolve, staying informed and agile will be key for those navigating the complex dynamics of digital asset trading.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
