XRP Weakens After ETF Pressure, Chart Signals Downtrend Channel Toward $2.75 Support

XRP Drops Nearly 5% as ETF Debut Sparks Heavy Institutional Selling

XRP suffered one of its sharpest declines of 2025, sliding almost 5% on Tuesday as institutional investors sold into the launch of the REX-Osprey ETF. The move erased more than $11 billion in market value and left the token consolidating around $2.83, with $2.77 emerging as the key level to watch.

Market Drivers

The REX-Osprey ETF logged $37.7M in opening-day turnover, the strongest ETF debut of the year.
Large wallets shifted $812M in XRP between undisclosed addresses during the session.
$1.7B in crypto liquidations hit derivatives markets, 90% of which were long positions.
Softer U.S. inflation at 2.18% reinforced expectations of a 50 bps Fed rate cut before year-end.
Bitcoin dominance climbed to 57.7%, reflecting a pullback from altcoins.

Price Action

XRP traded between $2.87 and $2.77, down 4.9% over 24 hours.
A flash crash at 06:00 GMT saw price plunge $0.10 on 656M volume, six times the daily average.
Rebounds capped at $2.86–$2.87, where resistance strengthened throughout the session.
The token ended the day at $2.83, slipping 0.7% in the final hour.

Technical Setup

Support: $2.77 remains the critical floor; $2.82 flagged as a secondary pivot.
Resistance: Heavy selling pressure at $2.87 confirms a short-term ceiling.
Trend: Lower highs and lows define a bearish channel, with risk extending toward $2.75–$2.70 if support fails.
Volume: Crash-day activity points to institutional-led selling.