XRP ETFs Post Record Outflows as Ripple Extends Price Drop

XRP price faces increased downside risks following massive outflows from US Spot XRP exchange-traded funds (ETFs) amid risk aversion in the broader crypto market.

Rising bond yields in the United States and Japan signal macroeconomic tensions, driving the total crypto market capitalization 32% below its October 2025 peak.

BTC, ETH and XRP retested their lowest levels in more than two weeks after crypto and stock markets digested US President Donald Trump’s new round of tariff threats.

The potential tariffs are an attempt by the administration to convince Denmark to reconsider its control over Greenland.

The S&P 500 index fell 1.9%, while gold prices hit a new all-time high of around $4,885 an ounce, and the crypto market cap fell to $3 trillion from nearly $3.2 trillion, according to Coingecko data.

XRP fell nearly 1% in the past 24 hours to trade at $1.90 as of 4:39 a.m. EST, with an intraday low of around $1.89.

Spot XRP ETFs See $53.32 Million in Net Outflows

According to Coin DataSpot XRP ETFs saw $53.32 million in net outflows on Tuesday, January 20, marking their second daily outflow and largest since they began trading in November 2025.

The outflow came from Grayscale’s GXRP ETF, which saw a total outflow of $55.39 million. Meanwhile, Franklin’s XRPZ saw $2.07 million in inflows.

Following the latest outflow, total net inflows since launch now stand at $1.22 billion.

The recent bearish period was not unique to XRP, as most other crypto ETFs also saw outflows. Specifically, BTC ETFs saw $479.70 million in outflows, while ETH ETFs saw $230 million.

Can XRP stabilize or are there more declines to come?

XRP price is currently trading between $1.90 and $2.00, sitting directly above the 200-day simple moving average (SMA) near $1.90, which has become a critical long-term support level. Price remains well below the 50-day SMA at $2.39, highlighting persistent medium-term downside pressure.

After peaking near the $3.60-$3.70 region, XRP entered a prolonged correction phase, forming a falling channel pattern.

Despite this, XRP has so far managed to defend the $1.85 to $1.90 zone, an area that also aligns with a major Fibonacci extension level from the previous advance.

The 50-day SMA remains downward sloping, signaling that the trend momentum has not yet changed in favor of the bulls. As long as the XRP price is trading below this SMA.

Above, the $2.20-$2.40 region stands out as an important resistance band, combining the top of the descending channel and the 50-day SMA.

XRP’s Relative Strength Index (RSI) is currently hovering around 41, below the neutral level of 50. This suggests weak momentum, although the RSI is not yet deeply oversold.

The longer-term XRP/USD chart suggests that the Ripple token could attempt a near-term stabilization above the $1.85-$1.90 support zone, given the confluence with the 200-day SMA. Sustainable holding here could allow another corrective move towards $2.10–$2.30, where previous breakout levels and channel resistance converge.

A decisive daily or multi-day close above the $2.30 to $2.40 region would be necessary to weaken the bearish structure.

On the other hand, a clear break below the 200-day SMA and support at $1.85 would significantly alter the bearish structure. As a result, XRP could slide towards the $1.35 to $1.50 demand zone.

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