Key Points
- XRP dropped 6% to $2.75, erasing $19 billion in market value over seven days
- Heavy institutional selling created strong resistance at $2.80 with 277 million volume spike
- Bitcoin’s broader market decline and Fed concerns amplify selling pressure
- First U.S. XRP ETF approval fails to stem losses as traders adopt risk-off stance
- Technical indicators suggest further downside risk toward $2.70 support level
XRP suffered a sharp reversal in late trading on September 25, tumbling nearly 6% as Bitcoin’s market weakness triggered a wave of institutional selling that wiped out $19 billion in value over the past week. The token’s attempt to break above $2.90 collapsed under extraordinary selling pressure, with resistance hardening at the $2.80 level.
According to CoinDesk, XRP experienced a 5.83% decline over the September 25 to 26 trading session, falling from $2.92 to $2.75 amid heavy institutional selling pressure. The move marks a significant reversal for the token, which had been riding high on optimism surrounding regulatory developments.
The Numbers Behind the Collapse
The severity of XRP’s decline becomes clear when examining the trading data. A massive volume spike of 276.77 million tokens changed hands during the critical rejection at $2.80, representing more than 2.5 times the 24 hour average volume. This extraordinary selling pressure created a distribution zone that has effectively capped further upside attempts.
Data from CoinMarketCap shows XRP’s market capitalization has contracted by approximately $19 billion over the past week, representing a 10.22% decline that has pushed the token below the psychologically important $3.00 threshold. The rapid unwinding of bullish positions has left traders scrambling to reassess their exposure.
The intraday price action painted a picture of sustained selling pressure. XRP traded within a volatile 6.3% range between $2.92 and $2.74, with multiple failed attempts to reclaim the $2.80 level. Each recovery attempt was met with fresh selling, creating resistance clusters between $2.81 and $2.82 that proved insurmountable.
Bitcoin’s Shadow Looms Large
The broader cryptocurrency market context has played a crucial role in XRP’s reversal. According to Bloomberg, Bitcoin’s decline below key support levels has triggered widespread selling across altcoins, with XRP among the hardest hit due to its recent rapid appreciation.
Federal Reserve Chair Jerome Powell’s recent comments on asset valuations have added to the bearish sentiment. Reuters reports that Powell’s hawkish tone regarding inflation and interest rates has dampened risk appetite across digital assets, with traders moving to reduce exposure to volatile positions.
The correlation between Bitcoin and altcoin movements has intensified during this selloff, with XRP showing particular vulnerability. When Bitcoin struggles to maintain support, altcoins typically experience amplified losses as traders de-risk their portfolios and move to cash or stablecoins.
ETF Approval Fails to Stem Losses
Perhaps most surprising is that XRP’s decline comes despite the SEC’s approval of the first U.S. XRP exchange traded fund, a development that would typically provide strong price support. The disconnect between positive regulatory news and negative price action suggests deeper market concerns are at play.
Market participants appear to be engaging in classic sell the news behavior, where anticipated positive developments are priced in advance, leading to profit taking when the news actually materializes. The ETF approval, while significant for XRP’s long term institutional adoption prospects, has been overwhelmed by immediate market pressures.
Whale activity has also raised concerns, with over $800 million in large transfers recorded over the past week according to blockchain analytics. These movements suggest major holders may be repositioning or reducing exposure, adding to the selling pressure.
Technical Analysis Points to Further Risk
From a technical perspective, XRP’s chart structure has deteriorated significantly. The high volume rejection at $2.80 created what traders call a distribution pattern, typically indicating that smart money is exiting positions. TradingView data shows this level now acts as formidable resistance.
Current support sits precariously at the $2.75 zone, which was defended during late session trading. However, the strength of this support remains questionable given the volume profile and selling intensity. A break below this level would likely trigger stops and accelerate the decline toward $2.70, where psychological support may emerge.
The late session saw a brief 1.09% bounce from $2.75 to $2.78, driven by concentrated flows between 00:50 and 00:57 UTC. However, volumes above 3 million tokens per candle during this period suggest short covering rather than genuine buying interest, raising doubts about the sustainability of any near term recovery.
Market Implications and Trader Positioning
The sharp reversal in XRP has broader implications for the cryptocurrency market. As one of the largest altcoins by market capitalization, XRP’s movements often signal shifts in overall market sentiment. The failure to maintain momentum above $2.80 despite positive regulatory developments suggests traders are prioritizing macroeconomic concerns over crypto specific catalysts.
Rising Treasury yields have added another layer of pressure, making risk assets less attractive relative to traditional fixed income investments. This shift in the risk reward calculus has prompted institutional investors to reduce cryptocurrency exposure, contributing to the selling pressure across digital assets.
For traders, the key levels to watch include the immediate support at $2.75 and the psychological level at $2.70. A sustained break below these levels could open the door to further declines toward $2.50, where longer term support may emerge. On the upside, any recovery attempts will need to clear the $2.80 to $2.82 resistance zone to signal a potential trend reversal.
Looking Ahead
As XRP navigates this period of heightened volatility, several factors will determine its near term trajectory. The token’s ability to hold support during the Asian trading session will be crucial, as this period often sets the tone for subsequent European and American sessions.
The interplay between crypto specific developments like the ETF launch and broader market forces will continue to shape price action. While the long term implications of U.S. ETF approval remain bullish for institutional adoption, short term traders appear focused on risk management amid uncertain market conditions.
The coming days will likely prove pivotal for XRP’s technical structure. A successful defense of current support levels could stabilize the token and set the stage for a recovery attempt. However, continued selling pressure could trigger a deeper correction that tests investor conviction in the recent rally.
Reader Question
With XRP facing its first major test since the ETF approval, do you believe this pullback represents a healthy correction or the beginning of a more significant trend reversal?
Is XRP’s Recent Decline a Buying Opportunity or Warning Sign?
XRP’s 6% drop amid Bitcoin weakness has erased $19 billion in value despite positive ETF news. Technical indicators show strong resistance at $2.80 with support at $2.75 under pressure, leaving traders to decide whether this correction offers opportunity or signals deeper troubles ahead.
Sources
- CoinDesk: https://www.coindesk.com/markets/2025/09/26/xrp-slides-6-as-bitcoin-drop-slashes-bullish-sentiment
- CoinMarketCap: https://coinmarketcap.com/currencies/xrp/
- Reuters: https://www.reuters.com/markets/currencies/crypto-markets-face-pressure-powell-signals-cautious-fed-approach-2025-09-25/
- Bloomberg: https://www.bloomberg.com/news/articles/2025-09-25/bitcoin-drops-below-95000-as-fed-concerns-weigh-on-crypto
- TradingView: https://www.tradingview.com/symbols/XRPUSD/
