Why XRP Fell: Market Sell-Off, ETF Outflows and Key Levels to Watch

Published: 2026-02-02 09:34:55 |

XRP fell sharply over the past week amid a broad crypto market rout that erased roughly $300–$500 billion from market value. Ripple’s token dropped from a multi-week high following a weekend rejection at $1.65, plunging as much as ~40% to a $1.50 low before bouncing to $1.67 and trading around $1.57 at press time. A major exacerbating factor was record outflows from XRP-themed ETFs: investors withdrew $92.92 million in a single day last Thursday, marking the worst daily and weekly ETF performance for XRP. Analysts warn that if XRP fails to hold $1.60, it risks ‘full capitulation,’ with next support targets near $1.38 and $1.02 and a potential slide below $1.00. Upside resistance sits at $1.86. Technical commentators note XRP needs a “more positive candle,” likely tied to a Bitcoin rebound and a decline in BTC dominance, to resume an upward trajectory. The story highlights elevated volatility, ETF-driven flows, and critical technical levels traders should monitor for short-term entries and risk management.

Bearish

This news is bearish for traders. The price decline is driven by a broad market sell-off and sizeable, record ETF outflows ($92.92M), both of which increase downside pressure and short-term liquidity risk for XRP. Key technical support levels (1.60, 1.38, 1.02) are highlighted; failure to hold these could trigger further selling and a psychological breach below $1.00. Historically, ETF redemptions and correlated large-cap market drawdowns (e.g., past Bitcoin-led crashes) have accelerated token declines and amplified volatility. Short-term traders should expect elevated volatility, prioritize risk management (tight stops, scaled position sizing), and watch Bitcoin’s performance and BTC dominance as leading indicators for XRP’s path. Longer-term impact depends on whether ETF flows stabilize and on macro/crypto-market recovery; absent sustained inflows or a BTC-led rebound, the outlook remains negative until clear technical recovery (daily close above resistance ~$1.86) occurs.