Why did the price of XRP fall?

XRP dropped 0.6% in the last 24 hours, underperforming the overall crypto market, which fell 0.45%. The main reasons include profit-taking after ETF excitement, hitting technical resistance at $3.07, and ongoing uncertainty about regulations as important SEC decisions approach in October.

1. ETF Buzz Doesn’t Equal Direct Buying – The new Rex-Osprey XRP ETF saw $37.7 million in trading volume, but XRP’s price still fell 3% (Bitget).
2. Technical Resistance at $3.07 – XRP couldn’t break above this key price level, triggering stop-loss orders.
3. Regulatory Uncertainty – The SEC postponed decisions on several XRP ETFs until October 18–25, keeping investors cautious.

Deep Dive

1. ETF Momentum Divergence (Bearish Impact)

Overview
The Rex-Osprey XRP Spot ETF (XRPR) launched on September 19 with a record $37.7 million in 24-hour volume. However, XRP’s price dropped 3% because ETF trading doesn’t directly translate into buying the actual XRP tokens. The ETF holds a mix of XRP, cash, and U.S. Treasury bonds, so demand for the ETF doesn’t always mean demand for XRP itself.

What this means
While the approval of ETFs initially raised optimism, the ETF’s structure allows big investors to gain exposure to XRP without buying the tokens outright. This is similar to what happened with Bitcoin ETFs, where ETF activity didn’t always push the spot price higher.

What to watch
The SEC’s upcoming decisions on Grayscale, Bitwise, and Franklin Templeton XRP ETFs between October 18 and 25. Approval could boost XRP’s price, while delays might prolong the downward trend.

2. Technical Rejection at Key Level (Bearish Impact)

Overview
XRP hit strong resistance at the $3.07 level, which corresponds to the 23.6% Fibonacci retracement—a common technical indicator traders use to predict price movements. The 4-hour chart shows bearish signals: the MACD indicator crossed downward (from 0.022 to 0.015), and the RSI dropped below 50, indicating weakening momentum.

What this means
Traders closed their long positions after XRP failed to break above $3.07. The price found some support between $2.94 and $2.97. If XRP falls below $2.90, it could trigger automated selling, pushing the price down toward $2.81, which was the low in July.

What to watch
Trading volume dropped nearly 11% to $3.08 billion, showing less confidence among traders. XRP needs to close above $3.02 consistently to challenge this bearish outlook.

3. Regulatory Uncertainty Persists (Mixed Impact)

Overview
Even though Ripple has won some legal battles, the SEC can still appeal parts of the case until October 18. Seven XRP ETF proposals are still pending, and market odds suggest an 87% chance of approval by 2025.

What this means
Many institutional investors are holding back until the SEC clearly states that XRP is not a security. The SEC’s recent delay in deciding on Grayscale’s ETF application highlights ongoing regulatory risks.

Conclusion

XRP’s recent price drop reflects profit-taking after ETF excitement, hitting technical resistance, and caution ahead of important regulatory deadlines. Although the market favors riskier assets right now, XRP needs a clear regulatory win or spot ETF approval to break out of its current $2.90–$3.15 trading range.

Key watch: Can XRP stay above $2.94 (its 50-day moving average) before the SEC’s October 18 deadline? Falling below this level could test June’s lows near $2.71, while holding steady might indicate investors are accumulating.

What could affect the price of XRP?

XRP’s price outlook depends on key factors like regulatory progress, ETF developments, and large investor activity.

1. SEC Lawsuit Resolution – A final settlement is expected by October 2025, which would clear up legal uncertainties.
2. ETF Growth – New XRP ETFs are launching, showing strong interest from big investors.
3. Whale Buying – Large investors purchased 900 million XRP in just two days, indicating optimism.

In-Depth Look

1. Regulatory Clarity & SEC Settlement (Positive for XRP)

Overview:
The lawsuit between the SEC and Ripple is close to being settled. In August 2025, both parties filed a joint motion to dismiss appeals. Experts predict the case will be fully resolved by October, likely reducing Ripple’s penalty from $125 million to $50 million and allowing institutional investors to buy XRP again.

Why it matters:
Clearing up this legal issue would remove XRP’s biggest risk, potentially attracting more institutional money. Past legal wins, like the July 2023 court decision, have led to price jumps of over 50%.

2. XRP ETF Growth & Market Impact (Mixed Effects)

Overview:
The Rex-Osprey XRP Spot ETF ($XRPR) launched with $37.7 million traded on its first day in September 2025. Grayscale’s GDLC ETF also includes XRP as part of its multi-asset fund. There are seven more XRP ETF proposals waiting for SEC approval by October.

Why it matters:
If approved, these ETFs could bring in over $8 billion in new investments within a year (Bloomberg). However, competition from ETFs focused on other coins like SOL and DOGE might limit XRP’s gains.

3. Large Investor Activity & Supply Trends (Generally Positive)

Overview:
In August 2025, “whales” (large holders) bought 900 million XRP, worth about $2.7 billion, over two days—the biggest buying spree since the 2024 rally. At the same time, $53.4 million worth of XRP was transferred to Coinbase, which could signal potential selling.

Why it matters:
This strong buying shows confidence in upcoming events like ETF approvals and legal news. But moving XRP to exchanges like Coinbase could mean some investors are preparing to sell soon. Also, 55 billion XRP still held in escrow creates ongoing selling pressure.

Conclusion

XRP’s chance to reach $3.60 or higher depends on the SEC lawsuit ending and ETF approvals driving more institutional interest. Large investor buying and Ripple’s growing RLUSD stablecoin also support positive momentum. However, Bitcoin’s strong market dominance (57.1%) and risks in altcoin liquidity remain challenges. Will October’s regulatory decisions spark a big XRP rally—or cause a “sell the news” pullback?

What are people saying about XRP?

XRP conversations are swinging between hopes for a breakout and worries about a pullback. Here’s what’s trending right now:

1. Technical tug-of-war – Experts are divided on whether $3.30 is a key resistance level that XRP can break through
2. Whale activity – Over $140 million worth of XRP moved to exchanges, raising concerns about potential sell-offs
3. ETF buzz – Franklin Templeton’s upcoming decision is stirring speculation about XRP’s future
4. Network paradox – While XRP transactions are dropping, large holders (whales) are at record levels

Deep Dive

1. @cryptoWZRD_: Critical $3.30 Test bearish

"XRP closed bearish at $2.98, now testing $2.80 support. Break below risks $2.75 retest – weekly bearish divergence looms."
– @cryptoWZRD (89K followers · 2.1M impressions · Sept 5, 2025)
[View original post](https://x.com/cryptoWZRD/status/1963793267696230630)
What this means: Negative sentiment is growing as XRP approaches an important support level. If XRP closes below $2.75 for the week, it could trigger automatic sell orders, pushing the price down further.

2. @RipBullWinkle: Whale Accumulation Signal bullish

"1.29M XRP moved to cold storage – typical pre-breakout accumulation pattern. Last similar move preceded 2024’s 600% rally."
– @RipBullWinkle (312K followers · 4.7M impressions · Sept 9, 2025)
View original post
What this means: Large XRP holders are moving coins into cold storage, which often signals they expect the price to rise. However, some believe these transfers might be preparing for private over-the-counter (OTC) deals instead of buying on the open market.

3. @Steph_iscrypto: ETF Catalyst Watch mixed

"XRP futures open interest up 48% MoM despite price dip – traders betting on Franklin Templeton ETF approval by Nov 2025."
– @Steph_iscrypto (187K followers · 3.2M impressions · July 29, 2025)
View original post
What this means: Traders are betting that the U.S. Securities and Exchange Commission (SEC) will approve Franklin Templeton’s XRP exchange-traded fund (ETF) by November 2025. If approved, this could bring over $4 billion in institutional investments to XRP. However, there’s still a risk of regulatory setbacks.

4. @CryptoQuant: On-Chain Contradiction neutral

"XRP active addresses down 37% YoY despite price surge – suggests speculative trading outweighs real usage."
– @CryptoQuant (956K followers · 15M impressions · June 21, 2025)
View original post
What this means: Even though XRP’s price has gone up, the number of active users on the network has dropped significantly compared to last year. This suggests that much of the price movement may be driven by speculation rather than actual use of the network. For XRP to sustain growth, more developers and applications need to engage with the platform.

Conclusion

The outlook for XRP is mixed. On one hand, technical signals and whale accumulation suggest potential for a price breakout. On the other hand, declining network activity and regulatory uncertainties are holding back enthusiasm. Keep an eye on the $2.75 to $3.30 price range this week — a clear move above or below this range could set the tone for the rest of the year. Also, watch whether XRPL’s tokenized assets, which have grown 2,300% year-to-date to $118 million, can maintain that momentum.

What is the latest news about XRP?

XRP is gaining momentum with growing support from big financial institutions, thanks to new ETF launches and positive regulatory developments. Here’s the latest:

1. Rex-Osprey XRP ETF Breaks Records (September 18, 2025) – The ETF saw $37.7 million in trading on its first day, showing strong interest in a regulated way to invest in XRP.
2. SEC Approves XRP and Dogecoin ETFs (September 19, 2025) – These ETFs are set to launch in December, potentially attracting more institutional investors.
3. Grayscale Launches Multi-Asset ETF (September 20, 2025) – XRP is part of the first U.S. crypto basket ETF, helping to boost its credibility among alternative cryptocurrencies.

Deep Dive

1. Rex-Osprey XRP ETF Breaks Records (September 18, 2025)

Overview:
The Rex-Osprey XRP Spot ETF (XRPR) had $37.7 million in natural trading volume on its first day, the highest debut for an ETF in 2025. It’s set up through Cayman Islands subsidiaries under U.S. investment laws and holds XRP, cash, and U.S. Treasury securities. This structure avoids the challenges of directly holding the cryptocurrency itself.

What this means:
This is a positive sign for XRP because it shows strong demand from U.S. institutions, even though XRP’s price dropped about 3% after the launch. The difference between the ETF’s popularity and XRP’s price suggests that regulated investment products might behave differently than the cryptocurrency market itself (Bitget).

2. SEC Approves XRP and Dogecoin ETFs (September 19, 2025)

Overview:
The U.S. Securities and Exchange Commission (SEC) approved spot ETFs for XRP and Dogecoin, with plans to launch in December 2025. This decision comes after a recent interest rate cut by the Federal Reserve and reflects growing political support for cryptocurrencies under the current administration.

What this means:
This is generally good news but with some caution. ETF approval shows progress in regulation, but managing liquidity and demand will be important. Experts note that the success of these ETFs depends on steady investor interest amid uncertain economic conditions (Bitget).

3. Grayscale Launches Multi-Asset ETF (September 20, 2025)

Overview:
Grayscale introduced the CoinDesk Crypto 5 ETF (GDLC) on the NYSE Arca exchange. This ETF includes 10% XRP, 70% Bitcoin (BTC), and 20% Ethereum (ETH). It benefits from new SEC rules that speed up approval for commodity-based exchange-traded products (ETPs).

What this means:
This is a positive development for XRP’s long-term adoption. The ETF’s quarterly rebalancing means institutional investors may regularly buy XRP. However, because it includes several altcoins, the ETF could experience more price swings during market downturns (Bitget).

Conclusion

XRP is moving beyond its past legal challenges and becoming more integrated with traditional finance, thanks to new ETFs and clearer regulations. While short-term price changes may be unpredictable, these steps position XRP as a key player bridging traditional finance and the future of cryptocurrency. The big question is whether the ETF launches in December will keep this momentum going or if broader economic factors will limit gains.

What is expected in the development of XRP?

XRP’s roadmap is centered on growing institutional use, improving connections between blockchains, and integrating real-world assets.

1. RLUSD Stablecoin Integration (2025) – Bringing Ripple’s USD-backed stablecoin to boost decentralized finance (DeFi) liquidity.
2. Axelar EVM Sidechain Launch (2025) – Connecting XRPL with over 55 other blockchain networks for smoother cross-chain operations.
3. Archax RWA Tokenization (2025) – Turning more than $100 million in real-world assets into digital tokens on the XRPL.
4. XRPL Apex 2025 in Asia (Q4 2025) – A major event showcasing new partnerships and technical improvements.

Deep Dive

1. RLUSD Stablecoin Integration (2025)

Overview: Ripple’s RLUSD is a stablecoin backed by the US dollar, currently available on both XRPL and Ethereum. It aims to improve liquidity on XRPL’s decentralized exchange by using XRP as a bridge through an automatic process. Ripple’s acquisition of Standard Custody helps ensure the stablecoin meets regulatory standards.
What this means: This development could increase XRP’s usefulness by driving more trading activity and attracting institutional investors. However, stablecoins face regulatory challenges that could affect progress.

2. Axelar EVM Sidechain Launch (2025)

Overview: Axelar will replace the current XLS-38d protocol as XRPL’s main bridge for Ethereum Virtual Machine (EVM) compatibility. This upgrade will allow XRPL to connect with Ethereum, Cosmos, and over 55 other blockchain networks. The community still needs to approve this change.
What this means: This is positive for developers, as it opens the door for Ethereum and Cosmos projects to build on XRPL. However, delays in community voting could slow down implementation.

3. Archax RWA Tokenization (2025)

Overview: Ripple is partnering with Archax, a financial exchange regulated by the UK’s Financial Conduct Authority (FCA), to tokenize institutional assets like bonds and commodities on XRPL. This will use new Multi-Purpose Tokens (MPTs) to represent these assets digitally.
What this means: This move supports XRP’s role in institutional finance by bringing real-world assets onto the blockchain. Success depends on how well compliance tools like escrow services and data oracles scale.

4. XRPL Apex 2025 in Asia (Q4 2025)

Overview: The upcoming XRPL Apex conference in Asia will focus on growth in the Asia-Pacific region. It will be supported by the 1 billion XRP Japan & Korea Fund, which backs hackathons and corporate partnerships.
What this means: This event could help expand the XRPL ecosystem, but its impact will depend on the projects and partnerships that emerge afterward.

Conclusion

XRP’s roadmap combines technical improvements like RLUSD and new sidechains with strategic partnerships such as Archax and the Asia Fund. By focusing on compliant institutional DeFi, XRPL aims to become a key platform for real-world assets. The pace of adoption may hinge on clearer regulations around ETFs and stablecoins.

What updates are there in the XRP code base?

XRP’s software received major updates in mid-2025, focusing on improving scalability, meeting regulatory requirements, and integrating decentralized finance (DeFi) features.

1. v2.5.0 Protocol Upgrade (June 2025) – Introduced atomic transaction batching, token escrows, and support for permissioned decentralized exchanges (DEX).
2. Dynamic NFTs Enabled (June 2025) – Launched mutable NFTs that can be updated after creation for more flexible asset management.
3. Consensus Stability Fix (September 2025) – Rolled back to version 2.5.1 after issues with stalled consensus in v2.6.0 were discovered.

Deep Dive

1. v2.5.0 Protocol Upgrade (June 2025)

Overview: The XRP Ledger’s v2.5.0 update added atomic transaction batching (XLS-56), which allows up to eight transactions to be processed together as one. This lowers transaction costs and enables more complex operations like cross-chain swaps.

What this means: This is a positive development for XRP because it improves scalability, especially for institutional use cases in DeFi, such as tokenizing real-world assets (RWAs) and automated market makers (AMMs). Developers can now create multi-step financial processes, like collateralized loans, with lower fees. (Source)

2. Dynamic NFTs Enabled (June 2025)

Overview: The DynamicNFT feature allows NFTs to be updated after they are created. This means issuers can change details like metadata, which is useful for things like evolving gaming items or certificates.

What this means: This change expands how NFTs can be used on the XRP Ledger but requires careful management of permissions to avoid misuse. For example, projects like FortStock are now using NFTs to represent warehouse inventory as collateral. (Source)

3. Consensus Stability Fix (September 2025)

Overview: Version 2.6.0 had issues with memory leaks and conflicts in the Boost library, causing the network’s consensus process to stall. To fix this, the software was rolled back to version 2.5.1, restoring stable ledger validation.

What this means: This fix is important for maintaining network reliability but delays some planned features, like improved checks for AMMs. Node operators need to update to avoid downtime. (Source)

Conclusion

XRP’s 2025 updates focus on making the network more scalable and compliant for institutional users, while also expanding NFT capabilities. Although recent bugs show there’s still work to do, growing adoption—such as the RLUSD stablecoin and Saudi Aramco’s oil tokenization on XRPL—suggests these technical improvements could boost enterprise use in late 2025.