XRP Price Drops as $40M ETF Outflows Shake Crypto Market
XRP Price Drops as $40M ETF Outflows Shake Crypto Market
XRP has hit a rough patch this week, as the cryptocurrency struggles to maintain momentum while ETF investors pull funds at an unprecedented rate.
XRP Consolidates Near $1.92
At the time of writing, XRP is trading around $1.9172, holding steady over the past few days. This is still about 20% below its year-to-date high of $2.41, showing that the token is facing some resistance as bulls struggle to push prices higher.
According to SoSoValue, spot XRP ETFs recorded their worst week since launch, with over $40 million in outflows. Since these funds started last November, cumulative inflows had reached $1.23 billion, but this week marked the first-ever weekly outflow, with 21Shares’ TOXR ETF taking the hardest hit.
Ripple USD Stablecoin Growth Slows
XRP’s price movement isn’t the only story. The Ripple USD (RLUSD) stablecoin has also slowed in growth. With a market cap holding steady at around $1.3 billion for the past few months, it’s clear the stablecoin isn’t expanding as aggressively as before.
However, there’s a silver lining. Binance recently listed RLUSD, making it accessible to millions of users, and the coin is set to expand across other blockchains through a Wormhole integration, which could boost liquidity and adoption in the coming months.
Crypto Market Trends Reflect Investor Rotation
XRP’s current weakness is part of a larger trend affecting the crypto market. Bitcoin has slipped to $89,000, while Ethereum has fallen below $3,000.
One key factor driving this trend is a rotation toward traditional assets. Investors are moving money into the stock market, where the Dow Jones and S&P 500 hover near record highs, and into precious metals like gold and silver, which have surged to historic peaks this year.
XRP Technical Analysis
Looking at the eight-hour chart, XRP has retraced from a high of $2.4145 to the current $1.9175.
The token remains below the 50-period and 200-period Exponential Moving Averages, signaling that sellers are in control. A bearish pennant pattern has formed—a combination of a vertical spike and a symmetrical triangle. This pattern is approaching its confluence point, which could trigger a downward breakout in the coming weeks.
If the bearish scenario plays out, XRP may test the next key support level at $1.7712, a drop of roughly 7.65% from its current price and the lowest level recorded on December 19.
Final Thoughts
XRP is navigating a challenging environment, both technically and fundamentally. ETF outflows, slowing stablecoin growth, and broader market rotations are creating pressure. However, new exchange listings and cross-chain integrations could provide potential support if market sentiment shifts.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risk, and readers should perform their own research before making investment decisions.
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