XRP coin faces heightened downside risks following massive outflows from spot XRP ETFs amid risk-off sentiment in the broader crypto market. It marks the second net outflow as analysts and on-chain data highlighted bearish signals.
Spot XRP ETFs Records $53.31 Million in Net Outflows
The United States-listed spot XRP ETFs recorded their second net outflow of $53.31 million, according to SoSoValue reported on January 21.
The outflow primarily comes from Grayscale’s GXRP ETF, which saw $55.39 million in redemptions. Meanwhile, Franklin’s XRPZ recorded $2.07 million in inflows.
XRP ETFs by Canary, Bitwise, and 21Shares saw no inflows. This marks the second outflow after $40.80 million in net outflows earlier this month, which was driven by 21Shares XRP ETF (TOXR).
Following the latest outflow, total net inflows since launch now stand at $1.22 billion. Also, the assets under management (AuM) dropped from $1.52 billion to $1.34 billion.
Massive Liquidations amid Bearish Technical and On-Chain Data
Outflows from Spot XRP ETFs occurred as bulls failed to hold prices above above $2.35. Selling pressure from whales and long-term holders caused XRP price to drop further below the key $2 support level.
As CoinGape reported, XRP could crash deeper to $1.80 and then to $1 as the current market structure echoes the 2022 pattern. Investors active in the 1-week to 1-month window are now accumulating XRP at prices below the realized cost basis of the 6-month to 12-month cohort. In 2022, it triggered an almost 60% crash.
Coinglass data shows over $11 million in XRP liquidated over the last 24 hours as traders worry about further selloffs by long-term holders and whales.
Analysts such as Crypto Tony pointed out $1.89 as the next support zone bulls need to hold this week. Investors are closely watching Thursday’s US PCE inflation data release and Friday’s Bank of Japan rate decision. Geopolitical tensions related to Trump tariffs and Donald Trump’s speech at the World Economic Forum 2026 later today to confirm price direction.
Will XRP Price Fall to $1.80 Today?
With critical support lost and spot XRP ETFs recording the largest-ever outflow, XRP coin risks falling further to $1.80 amid volatile price action today. However, the $1.80 is an inflection point zone, where the price could make a triple bottom for a bullish reversal.
XRP price is currently trading at $1.89. The intraday low and high are $1.88 and $1.95, respectively. The price weakness is happening due to declining trading volume, similar to 2021-2022.
Derivatives markets show selling sentiment at the time of writing. The total XRP futures open interest tumbled 2% in 24 hours to $3.35 billion, dropping almost 1% in the past four hours. The 4-hour futures OI on CME and Binance plunged almost 0.50% and 1.10%, respectively.