Post-ETF Selloff, XRP Confirms Downtrend Channel Formation With Bears Targeting $2.75

XRP Slides as ETF Debut Triggers Heavy Institutional Selling, Key Support at $2.77 in Focus

XRP posted one of its steepest single-day drops of 2025, sliding nearly 5% as institutional investors sold heavily into the launch of the REX-Osprey ETF. The selloff wiped out $11 billion in market capitalization, leaving the token range-bound around $2.83 and testing a fragile support floor at $2.77.

Market Backdrop

• The REX-Osprey XRP ETF recorded $37.7M in first-day volume, the strongest ETF debut of 2025.
• Whale wallets moved $812M in XRP during the session, suggesting distribution.
• $1.7B in liquidations swept across derivatives markets, with 90% from longs.
• September inflation cooled to 2.18%, strengthening bets on a 50 bps Fed cut this year.
• Bitcoin dominance rose to 57.7%, underscoring capital rotation away from altcoins.

Price Performance

• XRP fell from $2.87 to $2.77 in a $0.14 range over 24 hours.
• A flash crash at 06:00 GMT drove a 10-cent drop on 656M volume — six times the daily average.
• Recovery attempts capped at $2.86–$2.87, with multiple intraday rejections.
• The session ended at $2.83, down 0.7% in the final hour.

Technical Picture

• Support: $2.77 remains critical; $2.82 is a secondary pivot.
• Resistance: $2.87 reinforced as a heavy supply zone.
• Trend: Lower highs and lows confirm a short-term downtrend channel.
• Outlook: Breakdown risk extends toward $2.75–$2.70 if support fails.

What Traders Are Watching

• Whether $2.77 can withstand renewed selling pressure.
• Second-day ETF flows as a gauge of sustained demand versus “sell-the-news.”
• Whale wallet activity after $812M shifted during the crash.
• Fed policy trajectory and its effect on crypto liquidity.
• Bitcoin dominance trends and their implications for altcoins.