XRP Carves Downtrend Channel Following ETF Selloff - Next Target $2.75 in Sight
XRP's technical structure takes a bearish turn as institutional exits reshape the landscape.
Chart Patterns Emerge
The digital asset forms a clear downtrend channel after recent ETF liquidations—technical analysis now points toward the $2.75 level as the next critical threshold. Market momentum indicators suggest this isn't just noise.
Trading Volume Tells the Story
Volume spikes during the selloff confirm institutional participation, creating a textbook technical setup that traders are watching like hawks. The pattern's persistence suggests more volatility ahead.
Price Targets in Focus
While the $2.75 target grabs headlines, resistance levels between current prices and that milestone could make for a bumpy ride. Fibonacci retracements align neatly with the channel's boundaries—because what's crypto trading without some retro math?
Market sentiment remains divided between technical purists and those still waiting for the 'next big announcement' that'll supposedly fix everything. Because nothing solves market structure like another press release.
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.
