Spot XRP (XRP) exchange traded funds (ETFs) proceed to draw investor interest, recording inflows on daily basis last week as transactions rose to a six-month high.
Unfortunately, these positive fundamentals didn’t help the bulls keep the value above the psychological support level of $2. How low can XRP price fall?
Key Takeaways:
-
XRP fell below $2 in a 6-day correction as trade war fears stemming from Trump's tariff threats on Greenland triggered market-wide sell-offs.
-
Strong fundamentals equivalent to $1.28 billion in cumulative ETF inflows and a surge in XRP ledger transactions to a six-month high didn’t improve investor sentiment.
XRP price amid surge in foreign exchange reserves
XRP prolonged its correction on Monday and fell below the psychological level of $2, marking six straight days of declines.
The selloff is spanning the complete crypto market, with Bitcoin (BTC) falling to $92,000 and Ether (ETH) pushing towards the $3,000 support level, sparked by US President Trump's weekend threat of recent tariffs on European countries (via purchasing Greenland), fueling fears of renewed trade wars.
More than $788.9 million in long positions were liquidated, of which $224 million was in Bitcoin. XRP saw $39.5 million in long-term liquidation, the very best since November 22, 2025.
In total, a complete of $875 million was worn out of the market in each short and long positions, affecting roughly 250,000 traders, as shown within the figure below.
Crypto liquidations. Source: CoinGlass
Meanwhile, demand for XRP derivatives remained weak, falling to $3.56 billion on Monday from its annual high of $4.55 on Jan. 6, a decline of 21.7%.
An additional decline in OI may very well be accompanied by lower prices, as was seen in October 2025.
Open Interest for XRP Futures. Source: CoinGlass
XRP price ignores ETF demand and on-chain activity
The six-day price correction comes at the same time as institutional sentiment stays relatively positive, reflected in regular inflows into US-based XRP spot ETFs.
According to data from SoSoValue, XRP ETFs recorded a rise of $1.12 million on Friday, bringing cumulative inflows to $1.28 billion and total assets to over $1.52 billion. The Franklin XRP ETF (XRPZ) was the one XRP ETF with inflows on Friday, increasing its net assets to $287.75 million.
Spot XRP ETF flowchart. Source: SoSoValue
As Cointelegraph reported, global XRP investment products also recorded $69.5 million in inflows within the week ended January 16, indicating regular demand from institutions.
XRP also saw a rise in on-chain demand, evidenced by transactions rising to a six-month high last week.
Data from XRPScan shows that the variety of transactions executed on the XRP ledger rose to 2,575,561 on Wednesday, a level last reached in July 2025.
XRP Ledge: Daily transaction count. Source: XRPScan
Despite this robust network usage and continued ETF demand, XRP price has underperformed, falling 18.5% from its eight-week high of $2.41 reached on January sixth.
As Cointelegraph reported, stronger technical validation and high volumes within the spot and derivatives markets can be needed to verify a breakout to higher levels.
The XRP price have to be $1.80
According to data from Glassnode, the XRP/USDT pair is currently testing a each day order block around $1.96, a level of strong support.
The cost basis distribution heatmap shows that over 1.78 billion XRP were purchased at this level within the last six months. The next key support is at $1.78 and $1.80, where investors have acquired around 1.84 billion XRP.
XRP: Cost-Based Distribution Heatmap. Source: Glassnode
Note that the XRP/USD pair has not closed a each day candlestick below this level since April 2025 and bulls have to defend it to avoid a deeper correction.
If the value falls below this level, it could fall towards the green zone shown below, supported by the local low of $1.61 and the 200-week exponential moving average (EMA) positioned at around $1.41, which is the last line of defense for XRP price.
XRP/USD each day chart. Source: Cointelegraph/TradingView
Unfortunately for bulls, XRP's downward momentum is increasing based on the Relative Strength Index (RSI), which has reached its lowest point in 2026.
As Cointelegraph reported, a break below the support line of a descending channel at $2 will see the XRP/USDT pair extend its decline to $1.75 after which to the October 10 low of $1.61.
This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision. While we attempt to offer accurate and up-to-date information, Cointelegraph doesn’t guarantee the accuracy, completeness or reliability of the data in this text. This article may contain forward-looking statements which might be subject to risks and uncertainties. Cointelegraph is not going to be accountable for any loss or damage arising out of your reliance on this information.
