XRP fell below the $2 level, extending a weekly decline that has worried traders and renewed questions about the token’s near-term prospects.
The decline is due to vast outflows from XRP ETFs, broader market weakness related to U.S. tariff changes, and fresh debate over Ripple’s growing interest in stablecoins for global payments.
After briefly recovering to around $2.20 in mid-January, XRP fell to $1.85 over the weekend following what market commentators described as a surge in liquidity.
XRP's price trends to the downside on the daily chart. Source: XRPUSD on Tradingview
XRP ETF outflows raise selling pressure
XRP-linked ETFs saw its largest daily outflow since launching in November 2025. On January 20, investors pulled out about $53 million from these products, with the majority of losses coming from the Grayscale XRP ETF. Cumulative net inflows have now declined to levels last seen in early January.
The outflows reflected a broader risk-off in U.S. markets. Bitcoin and Ethereum ETFs also saw vast redemptions, while only Solana and Chainlink products attracted fresh capital.
The sell-off came after renewed concern about Trump’s tariff threats against Europe and Greenland, causing the biggest intraday decline since October 2025.
Technical and on-chain signals remain faint
From a technical perspective, XRP is trading below key moving averages, including the 50-day and 200-day levels, with resistance forming near the $2 zone.
Indicators such as the Interest Price Oscillator and MACD suggest continued declines. Analysts note that $1.85-$1.90 is currently a critical support range, with further declines possible if selling pressure continues.
Chain data also shows growing stress among long-term holders. According to Glass knotinvestors who purchased XRP six to twelve months ago maintain higher baseline costs than fresh buyers. These dynamics, similar to patterns seen in early 2022, could encourage selling in miniature rallies as underwater holders look for entry positions.
Stablecoin Focus Raises Questions About XRP
Adding to the uncertainty is Ripple’s recent push into stablecoins as the future of global settlements. Company CEO Monica Long said that stablecoins are subject to regulation Ripple USD (RLUSD) within the next five years, they are likely to become the backbone of global payments, especially in business-to-business transactions.
While Ripple executives continue to say that XRP and XRP Ledger remain central to the company’s infrastructure, the lack of direct references to the token in recent statements has concerned some holders.
RLUSD market cap has grown rapidly and stablecoin activity on the XRP Ledger has increased, but investors are watching closely to see how this translates into sustained demand for XRP itself.
Cover image from ChatGPT, XRPUSD chart on Tradingview
