XRP (XRP-USD) collapsed on one of its heaviest trading days of the year, plunging from $2.87 to $2.77 as the REX-Osprey ETF (XRPR) made its U.S. debut. Instead of sparking a breakout rally, institutions and whales used the launch to unload positions.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The sell-the-news cascade erased more than $11 billion in market value. Prices closed at $2.83, leaving XRP locked in a bearish downtrend channel rather than breaking higher.
The debut was historic in one respect. The REX-Osprey fund recorded $37.7 million in first-day trading volume, making it the largest ETF launch of 2025. But instead of excitement, the record volume was dominated by dumping, not buying.
Whale Wallets and Derivatives Drive the XRP Slide
On-chain data showed whale wallets moved more than $812 million worth of XRP during the session. At the same time, crypto derivatives saw $1.7 billion in liquidations, with nearly 90% coming from long positions.
The flash crash at 06:00 GMT drove price from $2.87 to $2.77 in minutes on 656 million tokens traded, six times the daily average. Recovery attempts fizzled quickly as resistance at $2.87 hardened into a ceiling.
By the close, XRP was stuck at $2.83, leaving traders to wonder whether the ETF launch turned what was supposed to be a breakout into a breakdown.
XRP’s Technicals Flash Bearish Warning Signs
The charts look just as rough as the tape. A clear downtrend channel has emerged, with lower highs at $2.856 and lower lows at $2.77. Momentum is skewed bearish, and technical analysts warn that failure to hold $2.82 could open the door to $2.75–$2.70 in the near term.
Support at $2.77, tested during the flash crash, is now the critical level to watch. If sellers force another break, traders may face a deeper slide. Resistance remains firmly stacked at $2.87, leaving little room for upside unless new ETF inflows stabilize price action.
Capital Rotates Back to Bitcoin
XRP’s struggle comes as broader crypto markets shift back toward Bitcoin. BTC dominance surged to 57.7% during the session as capital flowed out of altcoins.
Meanwhile, macro headwinds continue to weigh on sentiment. Inflation cooled to 2.18% in September, raising bets on a 50-basis-point Fed rate cut before year-end. But traders appear to be favoring Bitcoin exposure over riskier altcoins while monetary policy hangs in the balance.
What Traders Are Looking Out for Next
The focus now is whether day-two ETF flows can stem the bleeding or whether the debut will be remembered as a pure sell-the-news event. Whales remain under the microscope after moving nearly a billion dollars in tokens during launch day.
All eyes are also on the $2.77 support floor. If it holds, XRP may consolidate around $2.80 before attempting another move higher. If it cracks, bears will target $2.75 and below.
At the moment, XRP investors are left with a bitter truth. The ETF launch that was supposed to spark fireworks instead delivered one of the token’s ugliest trading days of 2025.
At the time of writing, XRP is sitting at $2.8776.
