The XRP market is once again under mounting pressure after spot XRP ETFs posted their largest-ever daily outflow, intensifying concerns about weakening institutional sentiment toward the asset.
XRP ETFs See Largest Outflows Led by Grayscale
Latest figures from SoSoValue reveal that XRP ETFs recorded $53.32 million in net outflows as of January 20, 2026, marking their largest single-day withdrawal on record. The outflow was led predominantly by the Grayscale GXRP ETF, which recorded a net outflow of $55.39 million.
Meanwhile, funds managed by Canary, Bitwise, and 21Shares saw no flows, highlighting sluggish interest among institutional buyers. In contrast, Franklin Templeton’s XRPZ ETF logged $2.07 million in inflows, though this was insufficient to offset the broader negative trend.
This marks the second major outflow event for XRP ETFs this month. Earlier, the category saw $40.80 million in outflows, driven largely by the 21Shares TOXR ETF, breaking the 36-day streak of no outflows for spot XRP ETFs. The withdrawals have raised alarms among traders who fear sustained institutional selling could accelerate market weakness.
Weak Market Structure and Macro Headwinds Amplify Bearish Pressure
The staggering ETF outflows arrived amid weak price action for XRP, as bulls failed to defend the crucial $2 support level, paving the way for deeper correction risks. CoinGlass data shows that over the past 24 hours, more than $9 million in XRP futures positions were liquidated, reflecting severe stress among leveraged traders.
Global macro factors are compounding the pressure. The Bank of Japan’s impending rate hike has injected fresh volatility into global markets, while the ongoing tariff tensions between the United States and the European Union have further rattled investor confidence.
These developments have triggered a wave of liquidations across crypto assets, with XRP particularly affected due to its already fragile technical structure.
XRP Price Nears Key Support as Analysts Warn of Possible Deeper Slide
XRP’s price outlook has grown increasingly fragile as the token trades close to the next major support zone at $1.89, as highlighted by analyst Crypto Tony. According to the analyst, the $1.89 zone is a crucial level bulls must hold this week to avoid a steeper decline.
Notably, XRP is trading around $1.91, just above this critical threshold. Meanwhile, market participants are turning their attention to Donald Trump’s upcoming speech at the World Economic Forum 2026, scheduled for later today.
Many watchers believe the address could significantly influence market direction depending on the policy signals and economic tone he delivers. With XRP hovering near a make-or-break level, the broader market’s reaction to the speech could determine whether the asset rebounds or slides further into bearish territory.
Evans Kelvin
The CoinRemark Team
