As the market remains weak and uncertainty persists, concerns about another XRP price crash are growing. This comes as selling pressure increases and market momentum shows no clear indication of an upcoming bullish reversal. Notably, XRP continued downtrend also coincides with a decline in retail and institutional activity, highlighting weakening confidence across the market.
XRP Price Remains Weak Amid Retail, Institutional Decline
After jump above $2 earlier this yearXRP price has been stuck around this level for weeks, repeatedly attempting to break through the upside, but default. Following last week’s unexpected price rise, the cryptocurrency collapsed towards $1.95where it has since stabilized and continued to consolidate for several days. This unexpected slowdown suggests that XRP remains as weak as last year despite the brief rally.
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This price weakness and volatility appear to be due to a slowdown in institutional participation. As selling pressure continues to mountSpot XRP ETFs recently recorded their second outflow since their launch in November 2025. This latest outflow marks the largest ever for XRP ETFs.
According to SoSoValue, the first release of XRP ETF occurred earlier this year on January 7 when $40.80 million was withdrawn from investment products. The most recent data watch that XRP ETFs saw another outflow of around $53.32 million on Tuesday, January 20.
Grayscale was the only issuer to record outflows on the day, with over $55.39 million flowing out of its GXRP ETF, while products issued by Canary, Bitwise and 21 Shares saw no inflows. Meanwhile, Franklin Templeton’s XRPZ saw inflows of $2.07 million, which only slightly offset losses, bringing net daily outflows to $53.32 million.
If more exits occur, the continuation decline in institutional activitycombined with the drop in the price of XRP, could send the cryptocurrency lower. At present, XRP tries to recover recent losses, with its price increasing by approximately 1.62% in the past 24 hours, according to CoinMarketCap.
XRP Open Interest Crash Adds To Weakness
In addition to the drop in ETF collection, XRP Open Interest (OI) reportedly crashed to new lows, signaling a sharp reduction in trading activity and retail market participation. Coinglass data watch that the XRP derivatives market saw its Open Interest futures contracts fall to $3.35 billion this Wednesday. This is the lowest level recorded since January 1, 2026, when OI fell to $3.33 billion.
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A decline in open interest often indicates that traders may be losing interest in XRP’s upside potential. This decline in optimism and confidence could be further fueled by growing geopolitical and economic tensions. regulatory uncertainty. Investors appear to be taking a riskier approach, as evidenced by the Crypto Fear and Greed Index, which has between territory of extreme fear.
Featured image created with Dall.E, chart from Tradingview.com
