XRP ETFs See First Weekly Outflows as Price Drops Below $2

The streak-breaking moment for the spot XRP ETFs arrived on January 7, 2026, when the funds, led by Canary Capital’s pioneering XRPC which debuted on November 13, registered their first daily net outflow. While that initial week still concluded with net positive flows, the following period told a different story. The subsequent week saw robust inflows of nearly $57 million, but the tide turned decisively at the start of the last full trading week. On that day, investors pulled a record $53.32 million from the funds, the largest single-day net outflow to date.

In a shortened trading week due to the Martin Luther King Jr. holiday in the United States, subsequent daily inflows of $7.16 million, $2.09 million, and $3.43 million failed to offset that massive withdrawal. According to data from the analytics firm SoSoValue, the four-day period resulted in total net outflows of $40.64 million. This officially ended the unbroken run of weekly net inflows since the ETF’s launch and reduced the cumulative net inflows from a peak of $1.28 billion to $1.23 billion, signaling a clear cooling of institutional and retail enthusiasm.

Mirroring the ETF outflow trend, the price of XRP itself has suffered a notable correction. After a powerful rally at the start of 2026 that propelled it from under $1.90 to a high of $2.40, the cryptocurrency faced strong rejection and slid back to the $2.10 level. The decline accelerated amid a broader market correction, which analysts attribute to growing geopolitical tensions. As of the latest data, XRP has retraced nearly all its 2026 gains, trading back around $1.90.

This price action has placed XRP in a critical technical position. A prominent analyst known as CW highlighted on social media that XRP is “back within the convergence after a fake breakout.” They emphasized that price movement over the weekend would be crucial for the asset’s near-term performance, noting that a definitive breakout from this current pattern is necessary to signal the start of a new rally. The analysis suggests the market is at an inflection point, awaiting a decisive move.

The prevailing mood among traders has turned demonstrably bearish towards Ripple’s native token, according to recent data from the analytics platform Santiment. This shift in sentiment is a direct reflection of the price slump and the breaking of the ETF inflow streak. However, Santiment’s analysis posits a contrarian view: such widespread bearishness could paradoxically become a catalyst for a price surge.

In cryptocurrency markets, extreme sentiment often precedes a reversal. If the majority of traders are positioned for further downside, a positive catalyst or a technical breakout, as highlighted by analyst CW, could trigger a short squeeze or a rapid influx of buying pressure. Therefore, the current pessimism surrounding XRP and its related ETFs may be setting the stage for a potential rebound, making the coming days critical for observing whether the market can find a floor and reverse the recent outflows and price declines.