As market weakness and uncertainty persist, fears of another XRP price drop are mounting. Selling pressure is rising, with no clear signs of a bullish turnaround. XRP’s continued decline is happening alongside a drop in both retail and institutional activity, highlighting a broader loss of market confidence.
XRP Price Remains Weak as Retail and Institutional Interest Fades
After climbing above $2 earlier this year, XRP’s price hovered near that level for weeks, unable to break higher. Following an unexpected jump last week, the cryptocurrency fell back to around $1.95, where it has been trading sideways for several days. This sudden pullback suggests XRP is still as weak as it was last year, despite the brief rally.
This weakness and volatility seem linked to a slowdown in institutional participation. As selling pressure builds, Spot XRP ETFs have seen their second outflow since launching in November 2025—marking their largest withdrawal yet.
Data from SoSoValue shows the first outflow occurred on January 7, with $40.80 million leaving the products. The most recent data, from Tuesday, January 20, shows another outflow of roughly $53.32 million.
Grayscale was the only issuer to see outflows that day, with over $55.39 million exiting its GXRP ETF. Products from Canary, Bitwise, and 21 Shares saw no activity, while Franklin Templeton’s XRPZ recorded inflows of $2.07 million. This only slightly offset the losses, resulting in a net daily outflow of $53.32 million.
If outflows continue, the drop in institutional activity—combined with XRP’s weak price—could push the cryptocurrency even lower. Currently, XRP is attempting a modest recovery, up about 1.62% in the past 24 hours.
Plummeting Open Interest Adds to the Pressure
Beyond the ETF outflows, XRP’s Open Interest (OI) has hit new lows, pointing to a sharp decline in trading activity and retail participation. Data from Coinglass shows that futures Open Interest for XRP fell to $3.35 billion this Wednesday—the lowest level since January 1, 2026, when it was $3.33 billion.
A falling Open Interest often suggests traders are losing confidence in XRP’s potential for gains. This fading optimism may be worsened by growing geopolitical and regulatory uncertainty. Investors seem to be taking a more cautious stance, reflected in the Crypto Fear and Greed Index, which has moved into “extreme fear” territory.
Frequently Asked Questions
Of course Here is a list of FAQs about why the price of XRP remains low and could drop further designed to be helpful for both beginners and more advanced users
Beginner Definition Questions
1 What is XRP and how is it different from Bitcoin
XRP is a digital asset and the native currency of the XRP Ledger a blockchain designed for fast lowcost international payments Unlike Bitcoin which is mined all 100 billion XRP were created at its inception with a portion held by its creator Ripple
2 Why is the price of XRP so much lower than Bitcoin or Ethereum
Price alone is misleading Market capitalization is a better comparison XRP has a much larger total supply than Bitcoin so each individual coin is priced lower Its market cap is still among the largest in crypto
3 What does could drop even further mean
It means that based on current market conditions technical analysis and negative news analysts believe there is a higher probability of the price decreasing in the near term than increasing
Reasons Market Dynamics
4 Whats the main reason XRPs price has stayed low recently
The primary reason is the multiyear legal battle between Ripple and the US Securities and Exchange Commission This created massive uncertainty causing many US exchanges to delist or halt trading which reduced demand and scared away investors
5 Even with positive court rulings why isnt the price soaring
While key rulings were positive for Ripple the case isnt fully over Furthermore selling the news is commoninvestors who bought expecting a win may take profits creating selling pressure The broader crypto market sentiment also plays a huge role
6 How does Ripple selling XRP affect the price
Ripple holds a large escrow of XRP and sells portions to fund operations and partners This regular selling adds consistent supply to the market which can suppress the price if demand doesnt keep up
7 Can general crypto market downturns affect XRP
Absolutely XRP is highly correlated with the broader crypto market When Bitcoin and Ethereum fall due to macroeconomic factors most altcoins including XRP typically fall harder