XRP’s market capitalization fell by $11 billion in a single session, sliding from $179.39 billion to $168.35 billion. The price dropped nearly 5%, moving from $2.87 to $2.77 before a late rebound to $2.83. Traders cited the REX-Osprey XRP ETF debut as a major catalyst.
The new XRP ETF posted $37.7 million in first-day trading volume, the largest ETF launch of 2025. Many investors used the event to take profits. During the session, large wallets transferred $812 million worth of tokens between addresses, increasing pressure and volatility.
Derivatives activity intensified the decline. Liquidations in the crypto market totaled approximately $1.7 billion, with 90% of the volume occurring on the long side. These compelled exits drove the price action to session lows and retained the XRP range-bound until the close.
The weight of macroeconomic forces also influenced sentiment. When interest rates rose in the US, they attracted capital to less risky, yielding assets. The weaker dollar impacted risk appetite, and Bitcoin's market dominance surged to 57.7%, up from 38% in January. This rotation decreased the demand for altcoins and exposed XRP.
Inflation cooled to 2.18% in September, and markets priced in a possible 50-basis-point rate cut by year-end. However, a stiffer policy still constrains liquidity today. Until easing comes, traders can expect choppy flows and a risk-averse approach to non-BTC assets.
Regulatory concerns remain part of the story. Ripple’s SEC settlement eased some legal risk, but limits on institutional XRP sales continue. Those curbs reduce large-ticket buying and keep many allocators on hold. As a result, confidence improves only in steps, not in a straight line.
Short-term charts highlight a bearish channel. Sellers capped rallies near $2.93 after repeated intraday rejections. Buyers defended $2.77 after a flash move, but momentum stayed weak. If $2.85 fails, traders flag downside markers at $2.80 and $2.75. If price reclaims $2.97, the tone could shift back to neutral.
Volume confirmed the stress. Turnover during the crash reached about six times the daily average of 105 million. Lower highs near $2.856 and lower lows around $2.83 underline the cautious setup into the next session.
On-chain trends show a split picture. Whale balances rose to approximately 8.11 billion XRP in Q3 2025, indicating ongoing accumulation. At the same time, new wallet creation fell by 30% to 40% compared to late 2024, and daily active addresses declined.
Network activity continues to show strength. The XRP Ledger processed about 70 million transactions in July 2025. DEX trading volumes increased by 21% month over month, boosted by RLUSD. Around 1,400 contracts were executed during the first week via an EVM-compatible sidechain, expanding XRP's presence in DeFi.