Strong ETF demand, high volume trades fail to lift prices.

Spot XRP (XRP) exchange-traded funds (ETFs) continue to attract investor interest, with trading hitting a six-month high, recording daily inflows over the past week.

Unfortunately, these positive fundamentals did not help the bulls hold the price above the psychological $2 support level. How low can the price of XRP go?

Main Receptors:

XRP fell below $2 in a 6-day correction as trade war threats from Trump's Greenland tariffs led to a broad sell-off in the market.

Strong fundamentals such as $1.28 billion in cumulative ETF revenue and XRP Ledger's trading volume rose to a six-month high failed to lift investor sentiment.

The price of XRP is increasing.

XRP extended its correction on Monday, falling below the psychological level of $2, marking six consecutive days of declines.

The sell-off extended across the crypto market, with Bitcoin (BTC) falling to $92,000 and Ether (ETH) pressing support at $3,000 after US President Trump threatened to impose new tariffs on European countries over the weekend (over buying Greenland), rekindling fears of a trade war.

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Over $788.9 million was settled on long positions, $224 million of the total Bitcoin balance. XRP saw $39.5 million in long liquidity, the highest since November 22, 2025.

As you can see in the picture below, in total, the board lost 875 million dollars in short and long positions from the market, which affected about 250,000 traders.

Meanwhile, demand for XRP derivatives remained weak, falling to $3.56 billion on Monday from the annual high of $4.55 on January 6, representing a 21.7% decline.

A further reduction in OI, as seen in October 2025, could be accompanied by lower prices.

XRP price ignores ETF demand, onchain activity.

The six-day price correction comes as institutional sentiment remains relatively positive, as reflected in steady inflows into US-based XRP spot ETFs.

According to data from SoSoValue, XRP ETFs added $1.12 million on Friday. The Franklin XRP ETF (XRPZ) was the only XRP ETF to gain on Friday, bringing its net assets to $287.75 million.

According to Cointelegraph, global XRP investment products attracted $69.5 million in inflows in the week ending January 16, indicating steady demand from institutions.

Last week saw a six-month high in transactions, XRP also showed an increase in onchain demand.

According to data from XRPScan, the number of transactions on the XRP Ledger rose to 2,575,561 on Wednesday, a level last seen in July 2025.

Despite this strong network usage and continued ETF demand, the XRP price underperformed, down 18.5% from its eight-week high of $2.41 reached on January 6.

As Cointelegraph reports, stronger technical confirmation and higher volume in the spot and derivatives markets are needed to ensure a move to higher levels.

XRP price should hold $1.80.

The XRP/USDT pair is currently testing the daily order block around $1.96, a level with strong support, according to data from Glassnode.

A heatmap of the cost base distribution shows that over 1.78 billion XRP have been bought at this level over the past six months. The next important support was placed at $1.78 and $1.80, with investors gaining approximately 1.84 billion XRP.

Since April 2025, the XRP/USD pair has not closed a daily candle below this level and bulls should avoid a deep correction.

If the price breaks below this level, it may drop to the green zone shown below, which is supported by the $1.61 area low and the 200-week exponential moving average (EMA) at $1.41, which represents the last line of resistance for the XRP price.

Unfortunately for the bulls, XRP's rate of decline is increasing based on the Relative Strength Index, or RSI, which hit a 2026 low.

According to Cointelegraph, a break below the descending channel support line at $2 will see the XRP/USDT pair decline to $1.75 and then the October 10 low of $1.61.