Technicals Signal $2.75 as Next Key Support
XRP price fell nearly 5% in the past 24 hours, pressured by heavy institutional selloffs following the debut of the REX-Osprey XRP ETF in the U.S. The decline erased an estimated $11 billion in market capitalization, raising questions about whether the highly anticipated exchange-traded fund will sustain long-term inflows.
The ETF made a historic entrance, recording $37.7 million in first-day trading volume — the largest ETF launch of 2025. However, traders quickly rotated out of spot XRP positions, fueling a sharp downturn.
On the 4-hour chart, XRP has formed a downtrend channel after failing to hold above the $3.00 psychological level. Price action now shows resistance between $3.15–$3.25, with major overhead supply around $3.60–$3.70.
Immediate support lies near $2.75, a level analysts see as the next test for bearish momentum. A sustained breakdown below this zone could expose XRP to deeper losses toward $2.50, while a bounce could re-target the $3.00 pivot.
“ETF launches tend to attract speculative inflows, but profit-taking from institutions can create short-term volatility,” noted BITX market strategist. “XRP’s long-term trend will depend on whether the ETF builds consistent weekly inflows beyond its opening surge.”
Despite the selloff, trading volume has remained strong across exchanges, signaling that retail traders are still engaged. Many investors view the pullback as a healthy correction after XRP’s strong summer rally, where the token briefly touched $3.80.
According to BITX analysts, “The launch is a milestone for XRP, but the chart shows clear exhaustion near $3.20. Until bulls reclaim $3.00 convincingly, the path of least resistance remains lower.”
With the ETF debut setting a new benchmark for crypto products in 2025, XRP is now at a crossroads. Traders will closely watch the $2.75 level, which could determine whether the asset stabilizes or extends its correction.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.