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"XRP ETF Launches with High Volatility: Regulatory Green Lights May Trigger a Comeback"

"XRP ETF Launches with High Volatility: Regulatory Green Lights May Trigger a Comeback"

Bitget-RWA2025/09/26 02:29
By:Coin World

- REX-Osprey's XRP ETF (XRPR) launched with $37.7M in volume but triggered a 5% price drop to $2.83, erasing $11B in market value. - Institutional selloffs and Bitcoin's 57.7% dominance highlighted macro risks, with technical indicators warning of potential breakdown below $2.82 support. - SEC faces October 18 deadline on Grayscale's ETF conversion, with 11+ applications pending and 95% approval probability by year-end 2025. - Ripple's legal battle nearing resolution as SEC prepares to drop appeal, potenti

The U.S.

ETF sector is experiencing a major shift as several major institutions compete for regulatory clearance, following the launch of the first spot ETF—REX-Osprey—which has already caused notable market turbulence. The REX-Osprey XRP ETF (ticker: XRPR) made its debut on September 19, 2025, recording an unprecedented $37.7 million in trading volume on its first day, making it the most successful ETF launch of the year XRP Forms Downtrend Channel After ETF Selloff, Next Target $2.75 [ 1 ]. Yet, the initial enthusiasm quickly faded as institutional investors began selling, causing XRP’s price to drop by nearly 5% to $2.83 within a day XRP slides 6% as market pullback overshadows XRP’s strong debut [ 2 ]. This wave of selling wiped out $11 billion in market capitalization and raised doubts about XRP’s ability to hold essential support levels, especially near $2.77 XRP Price Analysis: Here’s What’s Next for the XRP Price Rally! [ 3 ].

The ETF’s introduction happened alongside broader economic headwinds, such as a 50-basis-point rate cut from the Federal Reserve anticipated by the end of 2025, and Bitcoin’s market share climbing to 57.7% as investors shifted funds away from alternative coins XRP Forms Downtrend Channel After ETF Selloff, Next Target $2.75 [ 1 ]. XRP’s price movement showed bearish technical patterns, with a downward trendline forming between resistance at $2.87 and support at $2.83. Trading volume surged during the selloff—reaching 656.1 million that day—signaling large-scale institutional exits, while momentum indicators suggested a possible slide toward $2.75–$2.70 if the $2.82 support level fails XRP Forms Downtrend Channel After ETF Selloff, Next Target $2.75 [ 1 ].

Regulatory shifts have also been crucial in determining XRP’s direction. The U.S. Securities and Exchange Commission (SEC) faces a key deadline on October 18, 2025, to rule on Grayscale’s proposal to convert its XRP Trust into a spot ETF XRP SEC Case: Complete Analysis of Ripple Lawsuit and ETF [ 4 ]. With over 11 spot XRP ETF filings awaiting decisions—including those from Franklin Templeton, Bitwise, and WisdomTree—the market is preparing for a possible surge in approvals. Bloomberg experts estimate a 95% chance that at least one XRP ETF will be approved by the end of 2025. Meanwhile, Ripple’s lengthy legal dispute with the SEC is approaching its conclusion, as the agency is expected to withdraw its appeal by August 15, 2025, after a favorable court decision confirmed XRP’s classification as a commodity XRP Eyes Rebound After $2.70 Support Breaks: Here’s Why [ 7 ].

Investors are keeping a close watch on critical price points and blockchain activity. XRP’s recent fall below $3.00 has brought increased attention to the $2.75 support area, which has remained intact despite a 9% drop over 24 hours in early August 2025. Technical analysts point to a possible 60–85% rebound if the price consolidates within a descending triangle and breaks out above $2.70. On-chain metrics also indicate early signs of accumulation, with net taker volume moving toward neutral and futures leverage ratios stabilizing.

Looking forward, XRP’s future will be shaped by the interaction of regulatory decisions, macroeconomic trends, and institutional interest. Should ETF approvals proceed as anticipated, inflows of $7–8 billion in the first year could potentially push XRP’s price to the $5–$10 range, provided support levels hold. Nonetheless, short-term price swings remain a concern, with Bitcoin’s dominance and Federal Reserve policy likely to impact sentiment toward alternative coins. Traders should pay close attention to the $2.75 support and $2.80 resistance, as well as the SEC’s rulings in October XRP Forms Downtrend Channel After ETF Selloff, Next Target $2.75 [ 1 ].

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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