XRP ETF Rejection Sparks Market Panic—Price Plummets Amid Bearish Turn

Regulators slam the door on XRP ETF—and the market reacts with a sell-off frenzy.

Blood in the crypto streets as XRP takes a nosedive

The SEC's latest 'not now, maybe never' move sends traders scrambling. Liquidity pools evaporate faster than a DeFi dev's credibility.

Another day, another regulatory gut punch—but hey, at least the Wall Street suits got their Bitcoin ETFs approved first. Priorities, right?

Trading Volume Spike Confirms Resistance at $2.19

One of the most significant sell-offs occurred between 3 PM and 4 PM, during which XRP’s trading volume more than doubled. This heavy activity pushed the price lower, firmly establishing resistance NEAR the $2.19 level. An attempt by buyers to reclaim $2.179 fell short, and by early morning, bears had pulled the price down further to a new intraday low of $2.162.

The token is now trading just above $2.164, with a key support level forming near $2.147. This level has previously attracted buying interest, offering some hope of stabilization, but whether it can hold under current conditions remains uncertain.

Broader Market Mood Turns Cautious

The ongoing weakness in XRP is not just limited to technical levels. Broader market sentiment has turned cautious due to multiple external factors:

• ETF Rejections: Recent decisions by regulatory bodies to deny several spot crypto ETF applications have added to the pessimism. These rejections have affected multiple digital assets, including XRP, which had seen optimism about possible institutional entry earlier in the year.

• Global Macroeconomic Uncertainty: Tensions between the U.S. and China over trade, along with mixed signals from central banks about future interest rate moves, are contributing to a risk-off environment. This shift has hurt crypto markets, which are generally more volatile and sensitive to investor mood.

• Regulatory Noise: Continued uncertainty about how U.S. agencies will treat cryptocurrencies, especially Ripple’s ongoing legal challenges, has prevented a confident bullish narrative from forming.

Analysts See Warning Signs in Trading Pattern

Market watcher and crypto analyst BullnChill pointed out the concerning combination of high trading volume alongside a price decline. This pattern often reflects a shift in market sentiment where sellers begin overwhelming buyers—sometimes signaling a deeper correction ahead.

He added that the combination of external economic stress and a lack of positive price reaction to Ripple’s recent developments, such as its RLUSD stablecoin, suggests that the market isn’t currently valuing expansion news as a major catalyst.

Technical Picture: More Downside Ahead?

From a technical standpoint, the outlook remains weak unless bulls can reclaim control of the $2.20 resistance zone. On the hourly chart, XRP appears to be trading within a descending channel, which is typically a bearish formation. Until this pattern is broken, short-term momentum could continue to lean downward.

Support at $2.147 is now the next critical level to watch. If that breaks, analysts are looking at $2.10 as the next possible target. This psychological zone could offer some short-term relief, but it will require stronger buying interest to reverse the trend.

Ripple’s Developments Have Yet to Influence Price

Even though Ripple is actively building out its stablecoin strategy with RLUSD and gaining regulatory traction in crypto-friendly regions like Dubai and Singapore, these efforts haven’t led to a noticeable improvement in market sentiment. It appears that most traders are currently focused on macro events and price action rather than project fundamentals.

That said, long-term holders may see this as an accumulation phase if XRP maintains critical support levels. The challenge, however, is whether confidence can return in the near term without a major external or internal catalyst.

Short-Term Outlook: Watch the $2.20 Resistance

For now, all eyes are on whether XRP can break back above the $2.20 barrier. If that happens, it could set the stage for a broader recovery toward the $2.25 range. But if the current trend holds, XRP could continue to slide toward the $2.10 level—or even lower if panic selling resumes.

With selling volume gradually cooling off, there’s some breathing room for XRP to stabilize. However, the burden remains on buyers to prove that this recent drop was temporary and not the beginning of a deeper correction.