$XRP starting the year 2026 confidently with the target of $3.00, but that momentum has faded. Currently trading around $1.90, hopes for a Green January are slipping away as institutional fatigue and macro headwinds take over.
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🔹 Why Did XRP Decrease
Big players are minimizing risk. XRP ETF data shows a net capital outflow of $53 million per day, primarily due to conversion pressure from Grayscale.
Rising bond yields are tightening liquidity for high-risk assets. Additionally, the delay of the CLARITY Act and Coinbase retracting support for the proposal have pushed the market into a wait-and-see mode.
The continuous failure at the $2.00 mark has drained bullish momentum.
🔸 Deleveraging & Capital Flow
Open interest (OI) has decreased to $1.05 billion. The decline began before the price broke, signaling a calculated risk reduction rather than panic. This is a deleveraging event.
The inflow of funds to Binance is skyrocketing as prices struggle. A large amount of XRP moving to exchanges indicates that the selling side (distribution) is overwhelming the accumulation side.
🔹 Technical Outlook
XRP is stuck in a downtrend channel, trading below the 20-day EMA.
Price has lost the Fib 0.618 mark ($2.40) and Fib 0.786 ($2.05).
Currently hanging on precariously at $1.90. If the daily candle closes below this level, the door to $1.60 will swing wide open.
Bulls need to break $2.10 to change the bearish structure.
🔹 The combination of ETF outflows and exchange inflows creates a bleak short-term picture.
Correction phase with sellers in control.
If it breaks below $1.90, a drop to $1.60 is the next logical step.
The organization has withdrawn $53 million, and the inflow to Binance is increasing. Will you hold at support $1.90 or wait for a reset to $1.60?
News and research information from Trading Insight is for reference only and not investment advice. Please read carefully before making decisions.
