After failing near $3, XRP is back under pressure | Credit: Hameem Sarwar
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Key Takeaways
XRP has slipped back toward $1.90 amid ETF outflows, a risk-off macro backdrop, and uncertainty over the CLARITY Act.
Derivatives leverage is being flushed as open interest has fallen to about $1.05 billion, suggesting position unwinding.
Exchange inflows to Binance are spiking alongside failed rebounds, even as XRP remains below its 20-day EMA.
XRP started 2026 with confidence. It even attempted to reclaim $3.
However, as of today, that energy has clearly faded. XRP’s price has slipped back toward $1.90, and the weekly drawdown is now hard to ignore.
The “green January close” is also getting harder to defend. Due to this, here is what to expect from the altcoin again.
Why the XRP Crypto Is Down
First, institutions look tired. After a huge 2025 run, big players appear to be rotating out or taking profit.
One XRP ETF flow print showed a sharp $53 million daily outflow, driven largely by Grayscale redemptions.
That type of move rarely stays isolated. It often triggers copycat de-risking as traders reassess the near-term upside.
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Next, macro is leaning risk-off. Rising bond yields are not just a headline. It tightens liquidity.
It also reduces the appeal of high-beta trades. XRP sits right in that category. So even if XRP’s own story looks fine, the market still treats it like a levered bet on liquidity.
Then comes the policy fog. XRP’s SEC fight may be largely behind it, but the market still wants a clean framework for the rest of crypto. The CLARITY Act delay matters because it slows the certainty trade.
Coinbase’s decision to pull support from the draft on Jan. 14 added friction and pushed the market into “wait and see” mode.
Finally, the chart is not helping. XRP’s price keeps failing at the $2 psychological level, and that rejection has consequences.
As it stands, this could drain momentum and might continue to shake out leverage.
OI Declines With the Altcoin
Total open interest has rolled over from its early January peak to $1.05 billion, even as spot price grinds lower toward the $1.90 area.
The timing is important. Open interest began falling before price fully broke down, signaling that speculative positioning was already being cut.
As the selloff developed, leverage continued to drain from the system, reinforcing the idea that forced liquidations and position closures, not panic selling in spot markets, are driving the move. This keeps downside pressure persistent but measured.
At the same time, the scale of the open interest decline suggests excess risk is being flushed out.
Historically, XRP’s price tends to form more stable bases once leverage resets, mainly when open interest compresses back toward prior equilibrium levels.
If price stabilizes while open interest continues to fall or flattens, the altcoin might remain trapped below key resistance.
Inflows Show XRP Price Action Is Still At Risk
Furthermore, XRP is facing renewed sell-side pressure as exchange inflows to Binance spike while the price struggles to recover.
Large bursts of XRP moving onto the exchange in mid to late January coincide with a clear loss of upside momentum, reinforcing the idea that distribution, not accumulation, is dominating current flows.
The pattern is telling. Earlier inflow spikes in late December and early January appeared near local price highs, and the newest surge follows the same script.
As tens of millions of XRP hit Binance, the price slid toward $1.90, suggesting holders are positioning to sell or hedge rather than withdraw to cold storage.
What stands out is the asymmetry. Inflows expanded aggressively while XRP’s price only bounced modestly, indicating demand is absorbing supply but without conviction.
That position often leads to choppy consolidation or further downside, especially if inflows remain elevated. A sustained recovery would typically require inflows to cool off, signaling that selling pressure is easing.
XRP Price Analysis
From a technical perspective, XRP’s price continues to trade under sustained pressure, with the broader downtrend remaining intact on the daily chart.
At the time of writing, the price is holding just above the $1.90 area after another failed attempt to reclaim the 20-day EMA.
Each bounce into that zone has been sold, reinforcing the bearish structure.
The larger picture still points to a descending channel that has guided price lower since the peak above $3.50.
Recent price action shows XRP holding the upper boundary of that channel before rolling over again, a sign that sellers remain in control.
Momentum has weakened further, with the Awesome Oscillator staying below zero and failing to flip decisively positive during the latest bounce.
Fibonacci levels add to the pressure. XRP’s price has already lost the 0.618 retracement near $2.40 and failed to hold the 0.786 area around $2.05.
That breakdown shifted market structure lower and exposed the current support band near $1.90.
A daily close below this zone would leave the $1.60 region as the next major downside reference.
At the same time, downside momentum is no longer accelerating aggressively.
In addition, volume has moderated, and the pace of decline has slowed compared with the earlier sharp selloff.
This suggests selling pressure is becoming more selective, even though buyers have yet to step in with conviction.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
