XRP’s rise above $2.90 faced significant selling pressure on Sept. 25, resulting in a volume increase of $277 million that pushed the price back down to $2.75.
This decline wiped out over $18 billion in market capitalization over the last week and confirmed new resistance at $2.80, compelling traders to prepare for a potential test of the $2.70 support level.
News Background
• XRP dropped 5.83% during the Sept. 25–26 period, decreasing from $2.92 to $2.75 due to substantial institutional selling.
• A sudden drop at $2.80 around 17:00 triggered a volume surge of 276.77 million — more than 2.5 times the average 24-hour volume.
• Although the SEC approved the first U.S. XRP ETF, this optimism was mitigated by Powell’s cautions regarding valuations and increasing Treasury yields.
• Over the past week, XRP’s market valuation decreased by $18.94 billion, a reduction of 10.22%, falling below the crucial $3.00 psychological level.
Price Action Summary
XRP fluctuated between $2.92 and $2.74, showing a 6.3% intraday range before closing near $2.75.
• Sellers took control following a rejection at $2.80 on exceptionally high volume, forming a distribution zone that limited further gains.
• Subsequent attempts at recovery faltered around the $2.81–$2.82 marks, establishing new resistance clusters.
• The final hour saw a brief increase of 1.09% from $2.75 to $2.78, supported by concentrated trading between 00:50 and 00:57 on volumes exceeding 3 million per candle.
• Short-term support is currently identified in the $2.75–$2.77 range, with a downside risk pointed towards $2.70 if this support is breached.
Technical Analysis
• Range: $0.18 (6.3%) between highs of $2.92 and lows of $2.74.
• Resistance: Initial rejection at $2.80; clusters at $2.81–$2.82 formed on failed attempts to retest.
• Support: $2.75 zone held strong in late session; the $2.70 psychological level is the next key watch.
• Volume: 276.77M at 17:00 compared to a daily average of 108.42M.
• Pattern: High-volume rejection indicates distribution. The short-term consolidation around $2.77 suggests indecision ahead of the next movement.
What Traders Are Watching
• Whether the $2.75 level holds during the Asian session or drops towards $2.70.
• ETF optimism versus actual fund outflows — the sell-the-news pattern remains relevant.
• Whale movements following $800M in transfers over the week; positioning risk if selling resumes.
• Macro concerns: Powell’s hawkish stance, increasing Treasury yields, and capped Fed cut expectations.
