XRP price dropped sharply from about $2.77 to $1.58 between October 10 and 11, 2025. This represented a 40% decrease, the coin’s largest one-day drop ever. The collapse was caused by market instability after U.S. President Trump announced that starting November 1, all Chinese exports would be subject to 100% tariffs.
This event sparked unprecedented liquidations of about $20 billion across crypto marketplaces, affecting 1.6 million traders. Accumulated leverage, growing margin calls, and monster short positions exacerbated the drop. However, while it got rid of speculators, it didn’t signal fundamental weakness.
ETF Enthusiasm Drives Rebound
The recovery has been fast, with XRP rising back to about $2.60 as of this writing. This is accompanied by a 164% increase in trading volume in the last two days, amid a high buying demand. The rebound is primarily driven by the spike in expectations among many investors as the deadline for approval of XRP spot ETFs draws near.
The Securities and Exchange Commission (SEC) is reviewing applications from six major asset managers and it is expected to make its decisions in October. There is a general consensus that approval would significantly boost demand by opening the “floodgate” for large amounts of institutional capital.
Some experts estimate that if XRP ETFs are allowed, they might bring in $3 to $8 billion from institutions. ETF issuers have already filed and changed their S-1 registration statements, which suggests they are getting ready for fast approval. That being said, the approval process could be delayed because the U.S. government is still shut down and the SEC is short-staffed. Therefore, rather than depending only on previous fundamentals, the rally is speculative as buyers are banking on regulatory success.
If an ETF gets the green light, we are likely to see a slow, steady rise in prices because institutional investors are buying, not a huge, sudden increase. On the other hand, a denial could lead to a big short-term decline, which would demonstrate how much the coin’s performance depends on this regulatory event.
Another downside is that the initial XRP ETF applications did not result in a sustained, immediate price surge. This suggests that a large part of the expect impact of ETFs may already be priced into the current price. That could lead to a “sell-the-news” outcomes if the SEC gives the approvals.
Other Contributing Factors
The most important thing that has changed is that XRP issuer Ripple has resolved its legal battle against the SEC. This was after the US market regulator classified XRP as a non-security in certain contexts. This clarity has made investors more confident and lowered the risk of noncompliance.
Reports of many whales buying tokens and steady capital inflows into XRP-based investment products show that institutions have a strong interest in XRP. That sentiment helps to balance out market-wide volatility as well as supply pressure.
In addition, the debut of Ripple’s RLUSD stablecoin and the ongoing utilization of the XRP Ledger’s payment technology by banks and other enterprises show how XRP is becoming more useful in the real world.
XRP Price Technical Outlook
Technical analysis of the XRP price shows that it will likely be stable for a while, with mixed signals in the short term. However, many analysts are still bullish on the medium- to long-term outlook, especially if major fundamental changes happen.
The coin has been moving in a narrow range of between $2.90 to $3.20 in recent days. This consolidation suggests uncertainty or a buildup of pressure for the next big shift. XRP price is trading in a strong resistance zone between $2.98 and $3.00. To get bullish momentum going, the price needs to break above this cluster and stay above the $3.00 psychological barrier.
XRP price rise has been accompanied by a spike in trading volume, affirming buildup of bullish momentum.
In Conclusion
In the end, XRP’s interesting market dynamics are a balance between speculation and utility. In the near-term, the price will be closely tied to how the SEC decides on spot ETF applications. If approved, these applications could bring in a lot of regulated capital, which could push the price even higher. Some analysts even predict that by the end of 2025, the price could surge to $5 or even higher.
XRP’s rebound is driven by ETF approval hopes, institutional accumulation, and improved crypto market sentiment supporting renewed investor confidence.
Yes, large institutions and whales are accumulating XRP during dips. This is helping to strengthen price support and signaling long-term confidence.
Delays or rejections could lead to sell-the-news reactions, which could trigger volatility and potential price corrections.
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