XRP collapsed in one of its heaviest trading days of 2025, tumbling nearly 5% as institutions unloaded into the REX-Osprey ETF debut. The sell-the-news dynamic erased $11 billion in market value and left the token fighting to defend critical $2.77 support. News Background • Inaugural U.S. XRP ETF (REX-Osprey) posted record $37.7 million first-day volume, the largest ETF launch of 2025. • Whale wallets moved $812 million in tokens between unknown addresses during the session. • Crypto derivatives saw $1.7 billion in liquidations, with 90% coming from long positions. • Fed policy pivot looms: September inflation cooled to 2.18%, with markets pricing a 50 bps cut before year-end. • Bitcoin dominance surged to 57.7% as capital rotated away from altcoins. Price Action Summary • XRP crashed from $2.87 to $2.77 in a 24-hour span (Sep 22 03:00–Sep 23 02:00 GMT), a 4.9% drop across a $0.14 range. • Flash crash at 06:00 GMT saw price plunge from $2.87 to $2.77 on 656.1M volume (6x daily avg of 105M). • Resistance hardened at $2.87 during repeated intraday rejection. • Recovery peaked at $2.86 by 13:00 GMT before stalling. • Afternoon consolidation held $2.83–$2.87 before sellers regained control. • Final hour decline took price from $2.85 to $2.83 (-0.7%), leaving XRP at $2.83 close. Technical Analysis • Support: $2.77 critical floor from flash crash; secondary level $2.82 flagged for retest. • Resistance: Heavy supply zone at $2.87, with lower highs forming downtrend channel. • Volume: 656.1M in crash vs 105M avg confirms institutional dumping. • Trend: Lower highs at $2.856 and lower lows at $2.83 establish short-term bearish channel. • Indicators: Momentum skewed bearish, with breakdown risk toward $2.75–$2.70 if $2.82 fails. What Traders Are Watching • Can $2.77 support survive a second test after the flash crash? • ETF flows: Will day-two demand stabilize price or confirm a sell-the-news event? • Whale wallet behavior after $812M moved during session. • Fed’s rate cut path and its impact on dollar liquidity. • BTC dominance at 57.7% — rotation pressure on altcoins likely persists.
