XRP News Today: XRP's Volatility Boiled by ETF Hopes and SEC's Regulatory Crossroads

XRP experienced record liquidations of $19.6 billion following a sharp sell-off driven by regulatory developments and technical breakdowns, according to market data. The event, triggered by leveraged positions and stop-loss cascades, caused XRP's price to plunge from approximately $3 to near $2.40, with trading volume spiking as institutional spot ETF filings and arbitrage activity intensified volatility XRP Could Remain Volatile After $19.6B Liquidations as ETF Filings and Bullish Rectangular Pattern Point to Possible Recovery^[1]. Market participants noted a "Bullish Rectangular" pattern on multi-month XRP/BTC charts, suggesting potential for a recovery once selling pressure subsides XRP Could Remain Volatile After $19.6B Liquidations as ETF Filings and Bullish Rectangular Pattern Point to Possible Recovery^[1].

The liquidation surge coincided with regulatory filings for spot XRP ETFs by firms such as Grayscale, Bitwise, and Canary Capital, which submitted applications to the U.S. Securities and Exchange Commission (SEC) in late 2024 and early 2025. These filings, alongside existing ETFs like the Volatility Shares XRP ETF (XRPI) and ProShares Ultra XRP ETF (UXRP), underscored growing institutional interest in the asset . Analysts attributed the volatility to a combination of leverage, technical triggers, and heightened speculative activity around ETF approvals XRP Could Remain Volatile After $19.6B Liquidations as ETF Filings and Bullish Rectangular Pattern Point to Possible Recovery^[1].

Technical indicators highlighted mixed signals. The MACD crossed below its signal line, and a red histogram confirmed bearish momentum, but consolidation in a narrow range pointed to potential for a breakout. On three-month XRP/BTC charts, a rectangular pattern formed as buyers defended key support levels, with bulls requiring sustained volume above the pattern's upper boundary to validate a recovery XRP Could Remain Volatile After $19.6B Liquidations as ETF Filings and Bullish Rectangular Pattern Point to Possible Recovery^[1]. Historical context also emphasized XRP's sensitivity to regulatory events, with prior crashes during the 2021 SEC lawsuit period and wider crypto collapses serving as precedents for the recent volatility XRP Could Remain Volatile After $19.6B Liquidations as ETF Filings and Bullish Rectangular Pattern Point to Possible Recovery^[1].

Market structure analysis revealed a multi-step bottoming process post-crash, involving liquidity absorption by market makers, stabilization of data feeds, and gradual position unwinding by dealers. Zaheer Ebtikar of Split Capital noted that dealers often close long positions acquired during liquidation phases to profit from rebounds, a process that could extend over several days, especially with reduced liquidity over weekends XRP Could Remain Volatile After $19.6B Liquidations as ETF Filings and Bullish Rectangular Pattern Point to Possible Recovery^[1].

Looking ahead, the SEC's rulings on pending XRP ETF applications between October 18–25, 2025, remain pivotal. Analysts projected potential inflows of $4 billion–$8 billion in the first year if approvals are granted, with existing ETFs like REX-OSPREY's XRPR demonstrating strong demand . However, XRP's 160 billion market cap limits explosive gains compared to smaller-cap assets, prompting some traders to shift focus to presale projects like DeepSnitch AI for higher-risk, high-reward opportunities .

Technical price targets for XRP ranged from $3.31 to $5.00 by December 2025, contingent on clearing resistance at $3.19 and maintaining positive momentum in RSI and MACD indicators . A breakdown below $2.70, however, could trigger renewed bearish pressure, aligning with historical patterns during regulatory uncertainty XRP Could Remain Volatile After $19.6B Liquidations as ETF Filings and Bullish Rectangular Pattern Point to Possible Recovery^[1].