XRP has fallen below the $2 mark, continuing a week-long decline that has unsettled traders and raised questions about the token’s short-term prospects.
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The decline comes amid heavy outflows from
After a brief recovery to around $2.20 in mid-January, XRP fell to $1.85 over the weekend after what market commentators described as a liquidity clearing.
XRP's price trends to the downside on the daily chart. Source: XRPUSD on Tradingview
XRP ETF outflows are adding to the selling pressure
XRP-linked ETFs recorded their largest daily outflows since launching in November 2025. On January 20, investors withdrew about $53 million from these products, with the Grayscale XRP ETF accounting for the bulk of the losses. Cumulative net inflows have now fallen back to early January levels.
The outflows reflected a broader risk shift in US markets. Bitcoin and Ethereum ETFs also saw heavy redemptions, while only Solana and Chainlink products attracted new capital.
The sell-off followed renewed concerns over Trump’s tariff threats against Europe and Greenland, which triggered the biggest intraday market decline since October 2025.
Technical and on-chain signals remain weak
From a technical perspective, XRP is trading below the major moving averages, including the 50-day and 200-day levels, with resistance developing near the $2 zone.
Indicators such as the Percentage Price Oscillator and MACD indicate continued bearish momentum. Analysts note that $1.85–$1.90 is now a critical support range, with potential further downside if selling pressure continues.
Data on the chain also points to increasing stress among long-term owners. According to Glass junctionInvestors who bought XRP six to 12 months ago are holding on to higher fees than recent buyers. This dynamic, similar to the patterns we saw in early 2022, could encourage selling in small rallies as underwater holders look to exit their positions.
Stablecoin focus raises questions for XRP
Adding to the uncertainty is Ripple’s recent emphasis on stablecoins as the future of global settlements. Company Chairman Monica Long has said that regulated stablecoins are nice Ripple USD (RLUSD) are likely to play a fundamental role in global payments over the next five years, especially in business-to-business transactions.
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While Ripple executives continue to say that XRP and the XRP Ledger remain central to the company’s infrastructure, the lack of direct references to the token in recent statements has unsettled some holders.
RLUSD’s market cap has grown rapidly and stablecoin activity on the XRP Ledger has increased, but investors are keeping a close eye on how this translates into continued demand for XRP itself.
Cover image of ChatGPT, XRPUSD chart on Tradingview