The cryptocurrency market concluded the week with characteristic volatility, with XRP at the heart of a significant divergence. On-chain metrics and market flows are painting conflicting pictures, creating uncertainty about the token’s next directional move.

Institutional Outflows and Market Liquidations Weigh on Price

XRP’s value has declined over 8% this week, currently trading near $1.76. This drop was triggered by a breach of the crucial $1.80 support level. The breakdown precipitated a cascade of liquidations in the derivatives market, forcing out traders who had bet on a price rise. Approximately $72 million in long positions were liquidated in a short period.

Adding substantial downward pressure, institutional investors have begun pulling capital. Data from SoSoValue reveals that U.S. spot XRP ETFs recorded net outflows of nearly $93 million on January 29. This marks the first significant withdrawal of institutional funds this week, following total inflows of about $1.21 billion since the ETFs’ launch.

Should investors sell immediately? Or is it worth buying XRP?

A Contrarian Signal: Large Wallets Increase Holdings

In stark contrast to the selling, blockchain data indicates accumulation by wealthy investors. According to analytics from Santiment, the number of wallets holding at least one million XRP has increased by 42 since the start of the year. This activity suggests that high-net-worth addresses are viewing the current price weakness as a buying opportunity, betting on a medium-term recovery.

Ripple’s 2026 Development Blueprint Provides Fundamental Backdrop

Providing a foundation for this long-term confidence, Ripple has confirmed its development roadmap for the year. The company’s engineers are concentrating on three core initiatives to enhance the XRP Ledger (XRPL):

• Lending Protocols: A new system for on-chain lending is currently undergoing a validator voting process.
• Enhanced Privacy: The introduction of “Confidential Multi-Purpose Tokens” is scheduled for the first quarter, designed to balance institutional compliance requirements with user data protection.
• Advanced Programmability: Expanded smart contract capabilities are planned to bolster the decentralized finance (DeFi) ecosystem on the XRPL.

The market is now looking ahead to February 11, 2026, the date set for the “XRP Community Day.” This event is expected to showcase the practical applications of these technical upgrades. In the immediate term, however, the price remains in a tense consolidation. XRP is navigating a critical zone between support at $1.70 and resistance at $1.80. The coming days will determine whether the purchasing power of these major holders can successfully counterbalance the selling pressure from ETF outflows.

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