XRP faced a tumultuous trading day, plummeting nearly 5% amid significant market activity surrounding the debut of the REX-Osprey ETF, the first U.S. XRP ETF. This event, widely anticipated in the crypto community, turned into a dramatic “sell-the-news” scenario, resulting in a staggering $11 billion loss in market value and leaving the cryptocurrency struggling to maintain its critical support level of $2.77.
On its launch day, the REX-Osprey ETF recorded an astonishing $37.7 million in trading volume, marking the largest ETF launch of 2025 so far. However, as institutions and large investors swiftly offloaded their holdings, the price of XRP plummeted from $2.87 to $2.77 within just 24 hours. This sharp decline demonstrated the volatility that can accompany major news in the digital asset space.
The trading session also saw an alarming $812 million in XRP moved between whale wallets, signaling significant shifts among large holders.
Market dynamics turned increasingly bearish as crypto derivatives experienced $1.7 billion in liquidations, with an overwhelming 90% stemming from long positions, further amplifying XRP’s downward trend. As Bitcoin dominance surged to 57.7%, investors began reallocating capital away from altcoins, intensifying pressure on XRP and its peers.
As traders closely observe the crucial $2.77 support level, all eyes are on potential follow-up demand for the ETF and the impact of looming Federal Reserve policies, particularly the implications of a potential rate cut. The coming days will be vital in determining whether XRP can stabilize or if the market will continue to react negatively to a volatile trading climate.
XRP Trading Collapse Highlights
Key points regarding the recent decline in XRP’s market value and the implications for investors:
- XRP’s Major Decline:
- XRP fell nearly 5%, erasing $11 billion in market value.
- Price dropped from $2.87 to $2.77 in a single day.
- Institutions Unloading Assets:
- REX-Osprey ETF recorded a first-day volume of $37.7 million, suggesting significant institutional interest.
- Whales moved $812 million in tokens, indicating major market movements.
- Market Dynamics:
- $1.7 billion in crypto derivatives liquidations occurred, predominantly from long positions.
- Bitcoin’s dominance increased to 57.7%, indicating a shift of capital from altcoins to Bitcoin.
- Technical Levels:
- Critical support at $2.77 remains under threat after the flash crash.
- Resistance spotted at $2.87, indicating selling pressure at that level.
- Investor Considerations:
- Investors should monitor if $2.77 support can hold against further tests.
- The impact of Fed’s potential interest rate cuts on market liquidity is crucial.
XRP Faces Major Setback Amid ETF Launch and Market Volatility
The cryptocurrency landscape witnessed a significant upheaval as XRP experienced a remarkable downturn, losing nearly 5% of its value in one of its most tumultuous trading days of 2025. This sudden collapse transpired against the backdrop of the eagerly awaited debut of the REX-Osprey ETF, which, despite achieving a record $37.7 million in first-day volume, failed to uplift XRP and instead saw major institutions offloading their holdings. Such actions erased $11 billion in market capitalization, spotlighting the fragility of XRP at critical support levels.
In comparison to similar events in the crypto category, the consequences of the REX-Osprey ETF launch mirror other high-profile ETF rollouts that experienced sell-the-news dynamics. For instance, previous launches of Bitcoin and Ethereum ETFs had led to initial surges, followed by significant corrections as traders sought profit-taking opportunities. Unlike those events, XRP’s situation appears exacerbated due to broader market conditions and institutional manipulation, as evidenced by the transfer of $812 million in tokens and a staggering $1.7 billion in liquidations predominantly from long positions.
Benefits and Challenges for Stakeholders
This situation presents a mix of opportunities and challenges for various stakeholders within the cryptocurrency space. On one hand, the REX-Osprey ETF offers a new and innovative way for institutions to invest in XRP, potentially attracting further institutional interest in the long run. However, the immediate sell-off indicates that many investors are already wary, suggesting a lack of confidence in XRP’s technical strength and price action. With Bitcoin’s dominance surging to 57.7%, traders may be more inclined to favor the top cryptocurrency over altcoins, which puts additional pressure on XRP’s appeal.
Conversely, traders fixated on the $2.77 support level will undoubtedly be watching how this critical threshold holds up against potential further declines. Failure to maintain this support could lead to severe repercussions, impacting retail investors who are still hopeful for a rebound. Additionally, the looming Fed policy pivot with anticipated interest rate cuts adds further uncertainty, potentially shifting market liquidity and affecting all altcoins, including XRP.
In summary, while the XRP community could benefit from the eventual stabilization brought on by institutional confidence and ETF inflows, the ongoing challenges posed by market movements and strategic whale activity could create significant hurdles for those holding or trading XRP. The market’s reaction to these developments will ultimately determine whether XRP can not only survive but thrive amidst persistent volatility.
