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XRP’s Volatile Week: Institutional Liquidations and ETF Uncertainty

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A Week of Massive Liquidations and Price Rejection

The past week for XRP has been marked by significant volatility, largely driven by large-scale institutional liquidations. A staggering 470 million XRP tokens were offloaded across major exchanges, triggering a sharp selloff. This massive influx of supply created heavy resistance at the $2.92 price level, which the token failed to break through despite several attempts. The rejection at this key point, as confirmed by high trading volume, signaled strong bearish pressure and prevented any sustained upward movement. This event highlights the substantial impact that large institutional movements can have on the price of an asset, particularly in a market that is already on edge.

Broader Bearish Pressures

Beyond the liquidations, other factors contributed to the bearish sentiment surrounding XRP. The US Securities and Exchange Commission (SEC) once again postponed its ruling on several XRP exchange-traded fund (ETF) applications, including a prominent one from Nasdaq’s CoinShares. This delay adds to the existing regulatory uncertainty and casts a shadow over the potential for increased institutional flows. Additionally, a recent security assessment ranked XRPL, the blockchain behind XRP, as having one of the lowest security scores among 15 different blockchains. While on-chain settlement volumes surged by 500% in a single day, indicating growing adoption, the price failed to reflect these positive fundamentals due to the overwhelming bearish pressure from liquidations and regulatory news.

A Brief Respite from the Federal Reserve

Despite the negative news, XRP did experience a short-term price spike, gaining 3% in a single day. This was not due to its own fundamentals but rather as a result of a broader crypto rally sparked by comments from Federal Reserve Chair Jerome Powell. His “dovish” stance and hints at an upcoming interest rate cut led to a surge across the entire crypto market, with Bitcoin and other major tokens moving higher. XRP’s rally was a direct consequence of this macro-economic sentiment shift, demonstrating its correlation with the wider crypto market. However, the gains were short-lived, as the token soon dropped back to its previous levels, confirming the underlying weakness.

The Technical Outlook and What Traders Are Watching

Technically, the price action confirmed a hardened resistance at $2.92, with support weakening around the $2.80–$2.85 zone. The surge in volume during the selloff validated the bearish continuation. Going forward, traders are closely monitoring a few key areas. The ability of XRP to hold the $2.80 support level is critical; a break below this could see the price accelerate toward $2.75. Furthermore, any new developments regarding the ETF applications, with decisions now expected in October, will be a major catalyst. Finally, traders are watching whale accumulation patterns to see if on-chain adoption can eventually overcome the current price suppression and trigger a bullish reversal.

Read More: XRP Price Prediction: SEC ETF Delay Sends XRP Below $3 as Investors Brace for Volatility

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Krypton Today Staff

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