With the market still weak and uncertainty persisting, worries about another XRP price crash are growing. This is because selling pressure is increasing and market dynamics show no clear indications of an upcoming bullish reversal. Remarkably, XRPs continued downward trend also coincides with a decline in both private and institutional activity, underscoring weakened confidence in the broader market.
XRP Price Remains Weak Amid Retail and Institutional Decline
After jumped above $2 earlier this yearThe XRP price hovered around that level for weeks, repeatedly trying to break higher failed. After last week’s unexpected price increase, the cryptocurrency dropped to $1.95where it has since stabilized and continued to consolidate for several days. This unexpected downturn suggests that XRP remains as weak as last year despite the brief rally.
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This weakness and price volatility appear to be caused by a slowdown in institutional participation. If the selling pressure continues to increaseSpot XRP ETFs recently recorded their second outflow since launching in November 2025. This latest outflow is the largest ever recorded by XRP ETFs.
According to SoSoValue it is the first outflow of XRP ETF took place earlier this year, on January 7, when $40.80 million exited investment products. The most recent data shows that XRP ETFs recorded another outflow of approximately $53.32 million on Tuesday, January 20.
Grayscale was the only issuer to post outflows that day, with more than $55.39 million leaving its GXRP ETF, while products issued by Canary, Bitwise and 21 Shares saw no flows. Meanwhile, Franklin Templeton’s XRPZ recorded inflows of $2.07 million, only slightly offsetting losses, bringing net daily outflows to $53.32 million.
If more outflow occurs, this will continue decline in institutional activitycombined with XRP’s weakened price, could push the cryptocurrency lower. Currently XRP is trying to recover from recent losses, with the price up around 1.62% over the past 24 hours, according to CoinMarketCap.
XRP Open Interest Crash Adds to the Weakness
In addition to the decline in ETF inflows, XRP’s Open Interest (OI) has reportedly crashed to new lows, indicating a sharp decline in trading activity and retail market participation. Data from Coinglass shows that the XRP derivatives market saw its futures Open Interest fall to $3.35 billion this Wednesday. This is the lowest level since January 1, 2026, when OI fell to $3.33 billion.
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A drop in Open Interest often indicates that traders may be losing interest in the upside potential of XRP. This declining optimism and confidence may be further fueled by growing geopolitical and economic problems regulatory uncertainty. Investors appear to be taking a more risky approach, which is reflected in the crypto Fear and Greed Index, which entered extreme fear area.
Featured image created with Dall.E, chart from Tradingview.com