The cryptocurrency landscape is witnessing intriguing movements, particularly with XRP capturing the focus of both investors and analysts. Despite a backdrop of significant ETF inflows, the price of XRP is exhibiting a perplexing downturn.
In the last 24 hours, XRP has dipped to the $2.07 mark, accentuating a short-term retracement that leaves many traders scratching their heads, given the strong institutional interest that persists quietly in the background.
This discrepancy between the robust ETF activity and the price segment indicates a blend of market challenges, resistance levels, and profit-booking after XRP’s earlier surge from the $1.80 vicinity. The decline appears to be more significantly influenced by transient trading behaviors rather than adverse news.
Consistent ETF Inflows Yet XRP Struggles
The XRP exchange-traded funds are showing a positive trend with consistent inflows since inception. Recent reports indicate that these ETFs have gathered over $1.26 billion, without a single outflow day in sight. Just on January 15, the ETFs recorded an impressive influx of approximately $17 million, outpacing competing assets like Bitcoin and Ethereum.
Institutional engagement appears to remain strong beyond just ETFs. Remarkably, the amount of XRP held on exchanges has fallen to below 2 billion tokens, vastly reduced from over 4 billion in late 2025. This trend could suggest a move towards long-term accumulation, making fewer tokens available for sale.
Despite these encouraging signs, XRP’s price is experiencing a rough patch. The token peaked at $2.39 earlier in the month but has since retreated to the range of $2.00 to $2.10. In fact, over the past week, it has lost about 3% of its value, contrasting starkly with constant ETF inflows.
Resistance Levels Impacting Price Movements
Technical analysis reveals that short-term price movements are significantly influenced by key resistance levels. The $2.13 threshold has become a critical resistance area, where selling pressure has intensified each time XRP approaches this level.
In the latest trading session, XRP dropped from approximately $2.15 to $2.07 after facing rejection around the $2.13 resistance on substantial volume. This selling pressure briefly lowered XRP’s price to $2.059 before a small rally was initiated.
The observed market structure highlights a series of lower highs and lower lows, indicating bearish control over the short term. As long as XRP remains below the $2.13 resistance, rallies are likely to meet substantial selling pressures rather than sustained buying interest.
Market Conditions Influencing XRP’s Performance
The broader cryptocurrency market is also feeling the heat, with significant declines in global market capitalization evident. Such market conditions usually compel traders to limit their exposure, even towards tokens experiencing notable institutional inflows.
Compounding this cautious sentiment, several technical indicators are showing less friendliness. The recent shift of XRP’s price below its SuperTrend line on the weekly chart often implies a shift to bearish conditions, contradicting the ongoing chatter about a potential “super cycle” emerging within the community.
Looking at the long term, XRP could still benefit from progressive regulatory developments across Europe and ongoing ETF enthusiasm. However, currently, the short-term price action is shaped by technical resistance and profit-taking trends, suggesting a period of consolidation rather than a launch into a fresh upward trajectory.
Image credit: ChatGPT; XRPUSD chart courtesy of Tradingview
