XRP slipped below the $2 mark amid a broad crypto market sell-off, as strong spot ETF inflows and rising activity on the XRP Ledger failed to improve investor confidence.
Despite steady institutional demand, XRP was unable to hold above the key psychological support level. The token has now entered a six-day correction, raising concerns about how much further prices could decline.
Market Sell-Off Pressures XRP
XRP dropped below $2 after several days of losses, mirroring weakness across the wider crypto market. The downturn followed renewed trade war concerns, triggered by tariff threats from Donald Trump related to Greenland, which sparked a global risk-off move.
Bitcoin fell toward $92,000, while Ether slid closer to the $3,000 support zone, adding pressure to altcoins. The sell-off led to heavy liquidations, with more than $788 million in long positions wiped out. XRP alone saw $39.5 million in long liquidations, the largest since November 2025.
Overall, roughly $875 million was erased from crypto markets across both long and short positions, affecting around 250,000 traders, according to liquidation data.
At the same time, XRP derivatives demand weakened, with futures open interest falling to $3.56 billion, down from a yearly high of $4.55 billion recorded earlier in January. Further declines in open interest could add downside pressure, as seen during previous corrections.
ETF Inflows and Network Activity Fail to Support Price
XRP’s price weakness comes despite continued interest in U.S.-based spot XRP ETFs. Data from SoSoValue shows that XRP ETFs recorded inflows every day last week, adding $1.12 million on Friday alone. Cumulative inflows now stand at $1.28 billion, with total assets exceeding $1.52 billion.
The Franklin XRP ETF (XRPZ) led inflows, pushing its net assets to nearly $288 million. Global XRP investment products also attracted $69.5 million in weekly inflows, signaling sustained institutional participation.
On-chain activity has also strengthened. Transactions on the XRP Ledger surged to a six-month high, with more than 2.57 million transactions recorded in a single day last week, levels last seen in mid-2025.
Even with these supportive fundamentals, XRP has underperformed. The token is down 18.5% from its January high of $2.41, highlighting the disconnect between network strength and price action.
Key Support Levels to Watch
XRP is currently testing a key demand zone near $1.96, where a large volume of tokens was accumulated over the past six months. On-chain data shows that more than 1.78 billion XRP were purchased around this level.
Below that, the next major support lies between $1.78 and $1.80, where roughly 1.84 billion XRP changed hands. This zone has held firm since April 2025 and remains critical for preventing a deeper correction.
A sustained break below this range could send XRP toward $1.61, followed by the 200-week exponential moving average near $1.41, which represents a key long-term support level.
Momentum indicators suggest downside risks remain elevated. The relative strength index (RSI) has dropped to its lowest level of 2026, signaling growing bearish pressure. If XRP fails to reclaim $2, analysts warn the decline could extend toward $1.75, and potentially back to the October 2025 low near $1.61.
