XRP News Today: XRP's Plunge: Bearish Signals Clash with Institutional Optimism

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Saturday, Oct 11, 2025 1:39 am ET2min read
Aime RobotAime Summary

- XRP dropped 25% to $2.30 on October 8, 2025, marking its largest decline in months amid weakening buyer conviction and bearish technical patterns.

- Post-SEC settlement regulatory clarity and $210M institutional inflows in September highlight growing long-term confidence despite short-term volatility.

- Analysts note a "bull flag" pattern and key support/resistance levels ($2.65–$3.02), with ETF approvals and Fed rate cuts seen as critical catalysts for recovery.

- Divergent market projections range from $2.00 short-term dips to $4–$5 year-end targets, contingent on regulatory progress and macroeconomic shifts.

The

XRP
price experienced a significant one-day drop, marking its largest decline in recent months, according to multiple analysts. On October 8, 2025, XRP fell to $2.30 after trading as high as $3.10 earlier in the month, a 25% drop within a 24-hour period XRP Price Prediction: Crash Risk Rises as 'Lower Highs'[1]. This sharp correction followed a pattern of "lower highs" observed since July, where XRP's price peaks consistently fell short of previous levels despite Bitcoin's upward momentum XRP Price Prediction: Crash Risk Rises as 'Lower Highs'[1]. The decline raised concerns about weakening buyer conviction, as XRP's inability to surpass prior resistance levels suggested deteriorating market sentiment XRP Price Prediction: Crash Risk Rises as 'Lower Highs'[1].

The drop occurred amid heightened regulatory clarity for XRP. In August 2025, Ripple resolved its long-standing legal battle with the U.S. Securities and Exchange Commission (SEC), clearing the way for institutional adoption and triggering a rally to a seven-year high of $3.40 in July 2025 XRP Breaks Free: From Stagnation to Surge as Regulatory Clarity Unlocks Billions in Value[2]. However, the recent pullback indicates that market participants are recalibrating after months of gains. Analysts noted that XRP's price action formed a "bull flag" pattern in early October, signaling potential for a rebound if it could reclaim key resistance levels . A break above $3.02 could target $3.61, aligning with historical highs What To Expect From XRP in October 2025?[4].

Institutional demand remained strong despite the volatility. September saw $210 million in institutional inflows, with over 439 million XRP tokens ($1.2 billion) withdrawn from exchanges into cold storage, indicating growing long-term confidence What To Expect From XRP in October 2025?[4]. ProShares Ultra XRP ETF, the first SEC-approved XRP product, and pending spot ETF applications from major firms like Grayscale and WisdomTree, were cited as catalysts for sustained institutional interest XRP Breaks Free: From Stagnation to Surge as Regulatory Clarity Unlocks Billions in Value[2]. Bloomberg analysts assigned a 95% probability of ETF approvals by year-end 2025 XRP Breaks Free: From Stagnation to Surge as Regulatory Clarity Unlocks Billions in Value[2].

Technical indicators reinforced the bearish outlook. The weekly MACD histogram, a key momentum gauge, remained below zero, reflecting strengthening downward pressure XRP Price Prediction: Crash Risk Rises as 'Lower Highs'[1]. On-chain data showed a concentration of holders near $2.80, acting as a critical support zone . A sustained break below $2.65–$2.70 could trigger a deeper sell-off to $2.00, while a rebound above $3.02 might validate bullish momentum XRP Price Prediction: Crash Risk Rises as 'Lower Highs'[1].

Market analysts offered mixed projections. While some predicted a short-term pullback to $2.00, others anticipated a recovery to $4–$5 by year-end, contingent on ETF approvals and macroeconomic factors like Fed rate cuts XRP’s 2025 October Surge: Could $1.50 Be in Sight for Investors?[3]. The Federal Reserve's 89.3% probability of a 25-basis-point rate cut in October added liquidity tailwinds for risk assets like XRP XRP’s 2025 October Surge: Could $1.50 Be in Sight for Investors?[3]. However, regulatory risks-such as delays in ETF approvals or unexpected macroeconomic shifts-remained key variables XRP’s 2025 October Surge: Could $1.50 Be in Sight for Investors?[3].

Ripple's pursuit of a U.S. banking license through the Office of the Comptroller of the Currency (OCC) also loomed as a potential catalyst. A decision on the application, expected by late October, could further legitimize XRP's role in mainstream finance XRP Breaks Free: From Stagnation to Surge as Regulatory Clarity Unlocks Billions in Value[2]. Meanwhile, XRP's utility in cross-border payments and growing transaction volumes on the XRP Ledger (XRPL) underscored its fundamental value beyond speculative trading XRP Breaks Free: From Stagnation to Surge as Regulatory Clarity Unlocks Billions in Value[2].

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