Is XRP’s Downtrend the Start of Something Bigger? Or Just a Dramatic Drama? 🤔

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Markets

What to know:

  • XRP, bless its heart, fell almost 5% as institutions couldn’t resist dumping it during the grand debut of the REX-Osprey ETF, resulting in a loss of a staggering $11 billion in market value.
  • The debut of the very first U.S. XRP ETF was an absolute hit-$37.7 million in first-day trading volume, the most successful ETF launch of 2025. Who knew XRP could draw such a crowd?
  • Meanwhile, Bitcoin‘s dominance, always trying to steal the spotlight, climbed to a commanding 57.7%, as investors swapped altcoins like they were hot potatoes, while crypto derivatives saw a liquidation bloodbath worth $1.7 billion.

XRP, in what can only be described as an eventful trading day, took quite the tumble-nearly 5%, as institutions pounced on the opportunity to offload during the REX-Osprey ETF debut. This sell-the-news scenario swiftly wiped out a whopping $11 billion in market value. Clearly, XRP now faces the daunting task of defending its critical $2.77 support, as if it were a knight in armor warding off a dragon. 😅

News Background

• The inaugural U.S. XRP ETF (REX-Osprey) achieved a record-breaking $37.7 million in first-day volume, making it the largest ETF launch of 2025-take a bow, XRP!
• Meanwhile, whale wallets, clearly in need of some exercise, moved a jaw-dropping $812 million in tokens between unknown addresses during the session. Who knew whales had so much to do?
• Crypto derivatives experienced a spectacular $1.7 billion in liquidations, with a staggering 90% of it coming from long positions. Oops, seems like someone misread the market.
• The Federal Reserve’s policy change looms like a dark cloud: September inflation cooled to a modest 2.18%, with markets pricing in a 50 basis point cut before the year ends. Can’t wait to see what happens next.
• Bitcoin, ever the drama queen, saw its dominance surge to 57.7%, as capital poured out of altcoins faster than a glass of water on a hot day.

00-Sep 23 02:00 GMT), a 4.9% drop across a range of $0.14. Talk about a rollercoaster!

• The flash crash at 06:00 GMT saw prices plummet from $2.87 to $2.77 on a volume of 656.1 million-six times the daily average of 105 million. That’s not exactly a subtle move.

• Resistance became firm at $2.87, as the market repeatedly said “nope” to further gains. How rude!

• A brief recovery saw XRP peak at $2.86 by 13:00 GMT, before it stalled out like a car on an uphill climb.

• In the afternoon, XRP consolidated between $2.83 and $2.87, before the sellers came back in full force, ready to crash the party.

• In the final hour, XRP slid from $2.85 to $2.83 (-0.7%), ending the day at $2.83. Oh, the drama of it all!

Technical Analysis

• Support: The critical floor at $2.77 from the flash crash is holding strong; secondary level at $2.82 may need a retest. Good luck with that, XRP!
• Resistance: A heavy supply zone at $2.87, where lower highs have formed a lovely downtrend channel. How quaint.
• Volume: 656.1 million during the crash versus 105 million on average-confirmation of institutional dumping. At least someone’s profiting.
• Trend: Lower highs at $2.856 and lower lows at $2.83 have formed a short-term bearish channel. Not exactly a great look.
• Indicators: Momentum is skewed bearish, and the risk of a breakdown toward $2.75-$2.70 looms, should $2.82 fail to hold. All things considered, it’s not looking like a rosy future.

What Traders Are Watching

• Will the $2.77 support survive a second test after the flash crash? Fingers crossed! 🤞
• ETF flows: Will day-two demand stabilize the price, or will it confirm that this is a classic sell-the-news event? No pressure.
• Whale wallet behavior: After $812 million moved during the session, will the whales return for more fun? 🐋
• Fed’s rate cut path and its impact on dollar liquidity. It’s a cliffhanger we’re all watching, aren’t we?
• BTC dominance at 57.7% – the pressure on altcoins is likely to continue, so don’t get too comfortable!

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2025-09-23 07:37