XRP has slipped below the $2 mark, extending a week-long decline that has unsettled traders and renewed questions about the token’s short-term outlook.
The drop comes amid heavy outflows from XRP exchange-traded funds (ETFs), broader market weakness tied to U.S. tariff developments, and fresh debate over Ripple’s growing focus on stablecoins for global payments.
After briefly recovering to around $2.20 in mid-January, XRP fell as low as $1.85 over the weekend following what market commentators described as a liquidity sweep.
The outflows mirrored a wider risk-off move across U.S. markets. Bitcoin and Ethereum ETFs also saw heavy redemptions, while only Solana and Chainlink products attracted fresh capital.
The sell-off followed renewed concerns over Trump’s tariff threats against Europe and Greenland, which triggered the biggest intraday market drop since October 2025.
Technical and On-Chain Signals Remain WeakFrom a technical standpoint, XRP is trading below key moving averages, including the 50-day and 200-day levels, with resistance forming near the $2 zone.
Indicators such as the Percentage Price Oscillator and MACD suggest continued bearish momentum. Analysts note that $1.85–$1.90 is now a critical support range, with further downside possible if selling pressure persists.
Stablecoin Focus Raises Questions for XRPWhile Ripple executives continue to say XRP and the XRP Ledger remain central to the company’s infrastructure, the lack of direct references to the token in recent statements has unsettled some holders.
RLUSD’s market capitalization has grown rapidly, and stablecoin activity on the XRP Ledger has increased, but investors are watching closely to see how this translates into sustained demand for XRP itself.
Cover image from ChatGPT, XRPUSD chart on Tradingview
