XRP Drops Below $2 as ETF Outflows Spike and Stablecoin Settlement Debate Clouds Outlook
XRP has slipped under the $2 mark, extending a week-long decline that has unsettled merchants and renewed questions in regards to the token’s short-term outlook.
The drop comes amid heavy outflows from XRP exchange-traded funds (ETFs), broader market weak spot tied to U.S. tariff developments, and contemporary debate over Ripple’s rising give attention to stablecoins for world funds.
After briefly recovering to round $2.20 in mid-January, XRP fell as low as $1.85 over the weekend following what market commentators described as a liquidity sweep.
XRP ETF Outflows Add to Selling Pressure
XRP-linked ETFs recorded their largest day by day outflow since launching in November 2025. On January 20, traders pulled roughly $53 million from these merchandise, with the Grayscale XRP ETF accounting for a lot of the losses. Cumulative web inflows have now fallen again to ranges final seen in early January.
The outflows mirrored a wider risk-off transfer throughout U.S. markets. Bitcoin and Ethereum ETFs additionally noticed heavy redemptions, whereas solely Solana and Chainlink merchandise attracted contemporary capital.
The sell-off adopted renewed issues over Trump’s tariff threats in opposition to Europe and Greenland, which triggered the largest intraday market drop since October 2025.
Technical and On-Chain Signals Remain Weak
From a technical standpoint, XRP is buying and selling under key shifting averages, together with the 50-day and 200-day ranges, with resistance forming close to the $2 zone.
Indicators such as the Percentage Price Oscillator and MACD recommend continued bearish momentum. Analysts observe that $1.85–$1.90 is now a important help vary, with additional draw back potential if promoting strain persists.
On-chain knowledge additionally factors to rising stress amongst longer-term holders. According to Glassnode, traders who purchased XRP six to 12 months in the past are holding at greater value bases than latest consumers. This dynamic, much like patterns seen in early 2022, can encourage promoting into small rallies as underwater holders look to exit positions.
Stablecoin Focus Raises Questions for XRP
Adding to uncertainty is Ripple’s latest emphasis on stablecoins as the way forward for world settlement. Company president Monica Long has mentioned regulated stablecoins like Ripple USD (RLUSD) are prone to grow to be foundational in world funds over the following 5 years, notably in business-to-business transactions.
While Ripple executives proceed to say XRP and the XRP Ledger stay central to the corporate’s infrastructure, the dearth of direct references to the token in latest statements has unsettled some holders.
RLUSD’s market capitalization has grown quickly, and stablecoin exercise on the XRP Ledger has elevated, however traders are watching carefully to see how this interprets into sustained demand for XRP itself.
Cover picture from ChatGPT, XRPUSD chart on Tradingview
