As the market is still weak and uncertainty remains, concern of another XRP price crash they are growing. This comes as selling pressure is mounting and market forces are showing clear signs of an impending bullish reversal. Notably, XRP data continued downtrend and accompanied by a decline in both retail and institutional activity, underscoring weak confidence across the broader market.
XRP Price Remains Weak Amid Sell-Off and Institutional Decline
After jumping over $2 earlier this yearThe price of XRP remained stuck at that level for weeks, repeatedly trying to pull back higher but failing. Following the unexpected price increase last week, the cryptocurrency it is about 1.95 $when it settled down and continued to compound for several days. This unexpected drop suggests that XRP remains as weak as it was last year despite the short rally.
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This weakness and price volatility appears to be driven by a decline in institutional participation. As sales pressure continues to riseSpot XRP ETFs recently recorded its second exit since its launch in November 2025. This latest exit marks the largest ever recorded for XRP ETFs.
According to SoSoValue, The first XRP ETF release it happened earlier this year, on January 7, when $40.80 million came from investment products. The most recent data exhibitions that XRP ETFs recorded another outflow of $53.32 million on Tuesday, January 20th.
Grayscale was the only exit on the day, with more than $55.39 million exiting its GXRP ETF, while products issued by Canary, Bitwise, and 21 Shares saw zero inflows. Meanwhile, Franklin Templeton’s XRPZ recorded an inflow of $2.07 million, slightly reducing losses, bringing the total daily outflow to $53.32 million.
If multiple exits occur, continue decline in institutional activitycombined with a weak XRP price, it could push the cryptocurrency down. Currently, XRP is trying to recover from the latest loss, with its price increasing by about 1.62% during the last 24 hours, according to CoinMarketCap.
XRP Open Interest Crash Adds to Weakness
In addition to declining ETF revenues, XRP’s Open Interest (OI) has reportedly crashed at new lows, indicating a sharp decline in trading activity and retail market participation. Data from Coinglass exhibitions that the XRP derivatives market saw its futures Open Interest drop to $3.35 billion this Wednesday. This marks the lowest level recorded since January 1, 2026, when OI declined to $3.33 billion.
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A drop in Open Interest usually indicates that traders may be losing interest in XRP’s upside potential. This decline in trust and confidence may be fueled by geopolitical developments as well control uncertainty. Investors appear to be adopting a risk-reducing approach, reflected in the crypto Fear and Greed Index, he entered a place of extreme fear.
The featured image was created with Dall.E, a chart from Tradingview.com
