Recent Decline and Causes
The cryptocurrency market has experienced significant volatility in recent weeks, with Ripple’s XRP notably affected. After reaching a multi-week peak of $1.86 in early January 2026, XRP has since declined by approximately 13%, currently trading around $1.55.
This downturn is largely attributed to broader market trends, including substantial outflows from cryptocurrency exchange-traded funds (ETFs). On January 29, 2026, Grayscale reported a $98 million withdrawal from its XRP ETF, marking the largest single-day outflow in the fund’s history. This event triggered panic selling, causing XRP’s price to drop by 10% immediately following the outflow. The token now trades below critical support levels, exposing it to further downside if institutional sentiment does not stabilize.
Technical Analysis and Price Levels
Technical analysis indicates that XRP has fallen below key support levels between $1.62 and $1.75, suggesting potential further declines. Analysts have identified subsequent support levels at $1.38 and $1.02, with a possible decline below $1.00 if these supports fail. Conversely, a price rebound would face initial resistance at $1.86.
Broader Market Factors
The broader cryptocurrency market has also been impacted by macroeconomic factors, including rising geopolitical tensions and monetary policy decisions. For instance, Bitcoin recently fell below $82,000, leading to a market-wide selloff. As a high-beta altcoin, XRP often amplifies Bitcoin’s movements, resulting in more pronounced price fluctuations.
Long-Term Outlook
Despite the current downturn, some analysts remain optimistic about XRP’s long-term prospects. A report by institutional asset manager 21Shares set a base-case price target of $2.45 for XRP in 2026, citing factors such as U.S. spot ETF inflows and a seven-year low in exchange reserves. This analysis suggests a potential “supply shock” that could drive prices higher in the future.
Bottom Line
In summary, while XRP has faced recent challenges due to market-wide selloffs and significant ETF outflows, its long-term outlook remains subject to various factors, including institutional investment trends and broader market dynamics.
