XRP’s recent ETF launch, highly anticipated within the cryptocurrency community, has generated a mixed response. On September 21, the token initially surged past the $3.00 mark, only to experience a notable decline, settling at $2.91 as the night progressed. This drop occurred despite the ETF achieving a record opening-day volume of $37.7 million, marking it as the largest debut for any ETF in 2025.
The abrupt reversal in XRP’s fortunes is attributed to significant profit-taking by institutional investors. Analysts noted that the magnitude of the sell-off indicated that some large players capitalized on the influx of ETF-related enthusiasm to exit their positions. This wave of selling triggered cascading liquidations, leading to a loss of nearly $8 million in long positions and accelerating the downward trend.
One of the most dramatic drops happened during the midnight trading hours, when XRP fell sharply from $2.97 to $2.91 within minutes. This spike in activity, with over 261 million tokens traded—four times the daily average—further signified substantial institutional selling.
Although XRP managed to recover slightly to close at $2.92, the token struggled to reclaim the critical $3.00 level. Traders remarked that this unsuccessful rebound creates a “resistance cluster” just below the $3.00 mark, potentially limiting any further price action until new market catalysts emerge.
Technical analysis indicates that XRP is currently trapped in a narrow trading range, with resistance solidifying between $2.98 and $3.00 and support holding firm at $2.91 to $2.92, a level that saw significant testing during the overnight crash. For now, XRP appears poised to consolidate within this tight range.
Trading volume will play a crucial role in determining the token’s near-term trajectory. The recent surge to 261 million tokens traded highlights the prevailing control of sellers. If buying momentum linked to the ETF or overall market sentiment does not strengthen, analysts caution that XRP may retest $2.90 or even dip to the $2.85 mark before any potential breakout.
Market participants are closely monitoring whether XRP can establish the $3.00 level as a sustainable support base. The stability of inflows into the ETF in the coming days will be critical in determining if the initial record-breaking performance was merely a one-off event.
Broader macroeconomic conditions also warrant attention, as a potential rate cut by the Federal Reserve in September could bolster risk assets. However, growing exchange reserves for XRP suggest a significant supply may be poised to hit the market. Bulls may find their patience and conviction tested in the weeks ahead.
At present, XRP is trading at $2.8124, leaving traders and investors anticipating the next chapter in its volatile journey.
