XRP ETFs Record Second Day of Heavy Outflows as Price Slips Below $2
United States-listed spot XRP exchange-traded funds recorded a net outflow of $53.31 million on January 21, marking the second consecutive day of withdrawals, according to data from SoSoValue.
The move suggests that investors continue to trim exposure following last week’s broader market pullback.
ETF outflows often reflect short-term risk aversion rather than long-term conviction shifts, but consecutive negative days tend to amplify caution around near-term price action.
For XRP, the timing of the withdrawals coincides with a period of technical weakness across the crypto market.
XRP Price Slips as Momentum Fades
XRP fell below the $2.00 level earlier this week and is now trading near $1.89, struggling to regain upside momentum. On the 4-hour chart, the asset remains below recent swing highs, with sellers defending rallies aggressively.
Momentum indicators reinforce the cautious tone. The Relative Strength Index (RSI) is hovering just above the oversold zone, suggesting selling pressure has eased slightly but not yet reversed. Meanwhile, the MACD remains in negative territory, indicating that bearish momentum is still dominant despite minor stabilization attempts.
Broader Risk-Off Backdrop Weighs on Crypto
The ETF outflows and XRP’s price weakness are unfolding against a wider risk-off environment. Renewed geopolitical tension and fresh tariff threats from U.S. President Donald Trump toward the European Union have pushed investors toward defensive assets, draining liquidity from risk markets, including cryptocurrencies.
As capital rotates away from digital assets, even large-cap tokens like XRP are feeling the impact, particularly when institutional vehicles show sustained redemptions.
What to Watch Next
Whether XRP can stabilize above the $1.85-$1.90 range may determine short-term direction. A rebound in ETF flows or a broader improvement in risk sentiment could help restore confidence.
Until then, traders are likely to remain cautious, watching for confirmation that selling pressure has fully exhausted.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
