XRP Experiences Volatility as Key ETF Decisions Await

XRP is under pressure following an Oct. 10 flash crash, which caused a nearly 40% intraday drop before stabilizing between $2.20 and $2.60. Market analysts suggest upcoming ETF decisions and regulatory milestones could significantly impact XRP's future.

Flash-Crash Fallout: Liquidations, Whale Flows, and Key Support

During the Oct. 10 crash, XRP experienced a 40% decline, attributed to leverage washout rather than protocol issues.
Heavy deleveraging affected both centralized (CEX) and decentralized (DEX) exchanges.
XRP's current pivotal point is the 200-day EMA near $2.62.
Bulls require a daily close above $2.80–$3.00 to counteract the downtrend; losing $2.20 could target $1.80 next.
Ripple’s RLUSD stablecoin maintained its peg, highlighting XRPL's resilience.

Derivatives Heat Up as XRP ETF Window Nears

Futures open interest has decreased, but options activity surged, indicating trader anticipation of volatility.
The SEC's accelerated 75-day review period for ETFs may influence risk appetite.
Recent legal clarifications affirm XRP isn't a security in secondary markets, potentially increasing institutional participation.

What Would Flip the Trend

XRP remains below the 20/50/100-day EMAs with bearish momentum.
To reverse the trend, bulls need:

Price rise above $2.80–$3.00 with higher spot volume for targets of $3.50–$3.80.
Net ETF inflows and stable options skew to confirm dip-buying.
Improved macro conditions to support risk-taking.

A fall below $2.20 might lead to further declines toward $1.80 or even $0.75 in a severe downturn.

The institutional narrative remains positive, supported by RLUSD stability and growing compliance tools, suggesting potential long-term adoption if regulatory catalysts are aligned.