XRP Carves Downtrend Channel Following ETF Exodus - $2.75 Target in Sight
XRP charts paint a clear technical picture as institutional selling pressure reshapes its trajectory.
Channel Dynamics
The digital asset establishes consecutive lower highs and lower lows—classic downtrend formation. Each rejection at descending resistance levels signals weakening bullish momentum.
Price Projections
Technical analysis suggests the pattern could propel XRP toward the $2.75 marker if current channel integrity holds. Fibonacci extensions align with this target zone.
Market Context
ETF outflows trigger the usual herd mentality—traders panic-selling while whales accumulate at discounts. Because nothing says 'sophisticated investing' like following emotional retail traders off a cliff.
Watch the channel boundaries for breakout confirmation. Either direction could determine XRP's medium-term fate.
News Background
• Inaugural U.S. XRP ETF (REX-Osprey) posted record $37.7 million first-day volume, the largest ETF launch of 2025.
• Whale wallets moved $812 million in tokens between unknown addresses during the session.
• Crypto derivatives saw $1.7 billion in liquidations, with 90% coming from long positions.
• Fed policy pivot looms: September inflation cooled to 2.18%, with markets pricing a 50 bps cut before year-end.
• Bitcoin dominance surged to 57.7% as capital rotated away from altcoins.
Price Action Summary
• XRP crashed from $2.87 to $2.77 in a 24-hour span (Sep 22 03:00–Sep 23 02:00 GMT), a 4.9% drop across a $0.14 range.
• Flash crash at 06:00 GMT saw price plunge from $2.87 to $2.77 on 656.1M volume (6x daily avg of 105M).
• Resistance hardened at $2.87 during repeated intraday rejection.
• Recovery peaked at $2.86 by 13:00 GMT before stalling.
• Afternoon consolidation held $2.83–$2.87 before sellers regained control.
• Final hour decline took price from $2.85 to $2.83 (-0.7%), leaving XRP at $2.83 close.
Technical Analysis
• Support: $2.77 critical floor from flash crash; secondary level $2.82 flagged for retest.
• Resistance: Heavy supply zone at $2.87, with lower highs forming downtrend channel.
• Volume: 656.1M in crash vs 105M avg confirms institutional dumping.
• Trend: Lower highs at $2.856 and lower lows at $2.83 establish short-term bearish channel.
• Indicators: Momentum skewed bearish, with breakdown risk toward $2.75–$2.70 if $2.82 fails.
What Traders Are Watching
• Can $2.77 support survive a second test after the flash crash?
• ETF flows: Will day-two demand stabilize price or confirm a sell-the-news event?
• Whale wallet behavior after $812M moved during session.
• Fed’s rate cut path and its impact on dollar liquidity.
• BTC dominance at 57.7% — rotation pressure on altcoins likely persists.
