Here’s Why The XRP Price Is Still Weak, And Could | Crypto News
With the market still weak and uncertainty lingering, issues of another XRP price crash are growing. This comes as promoting stress will increase and market dynamics show no clear indications of an upcoming bullish reversal. Notably, XRP’s ongoing downtrend also coincides with a decline in both retail and institutional exercise, underscoring weakened confidence across the broader market.
XRP Price Stays Weak Amid Retail And Institutional Decline
After leaping above $2 earlier this yr, the XRP price stayed caught around that stage for weeks, repeatedly making an attempt to break to the upside but failing. Following last week’s surprising price increase, the cryptocurrency crashed down toward $1.95, where it has since stabilized and continued to consolidate for a number of days. This surprising downturn suggests that XRP stays just as weak as it was last yr despite the temporary rally.
This weak spot and price volatility seem to be pushed by a slowdown in institutional participation. As promoting stress continues to mount, Spot XRP ETFs have just lately recorded their second outflow since launching in November 2025. This latest outflow marks the most important ever recorded by XRP ETFs.
According to SoSoValue, the first XRP ETF outflow occurred earlier this yr, on January 7, when $40,80 million exited the investment merchandise. The most current data reveals that XRP ETFs recorded another outflow of roughly $53.32 million on Tuesday, January 20.
Grayscale was the only issuer to post outflows that day, with more than $55.39 million leaving its GXRP ETF, while merchandise issued by Canary, Bitwise, and 21 Shares noticed zero flows. Meanwhile, Franklin Templeton’s XRPZ recorded inflows of $2.07 million, which only barely offset the losses, bringing the online daily outflow to $53.32 million.
If more outflows happen, the continued drop in institutional exercise, mixed with XRP’s weakened price, may push the cryptocurrency decrease. At current, XRP is making an attempt to get well from current losses, with its price rising roughly 1.62% over the past 24 hours, according to CoinMarketCap.
XRP Open Interest Crash Adds To Weakness
In addition to the decline in ETF inflows, XRP’s Open Interest (OI) has reportedly crashed to new lows, signaling a sharp discount in trading exercise and retail market participation. Data from Coinglass reveals that XRP’s derivatives market noticed its futures Open Interest fall to $3.35 billion this Wednesday. This marks the bottom stage recorded since January 1, 2026, when OI declined to $3.33 billion.
A drop in Open Interest often signifies that merchants could also be shedding curiosity in XRP’s upside potential. This waning optimism and confidence could also be additional fueled by growing geopolitical and regulatory uncertainty. Investors seem to be adopting a more risk-off method, mirrored in the crypto Fear and Greed Index, which has entered excessive concern territory.
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