The initial euphoria that greeted XRP at the start of the year has given way to a significant test of its recent gains. For the first time since their launch, U.S. spot ETFs tracking the asset have recorded net outflows, bringing the recent price surge to an abrupt halt. As the price tests key technical levels, on-chain data suggests major investors may be using this pullback as a strategic accumulation opportunity.
Institutional Profit-Taking Emerges
The primary catalyst for the shift in sentiment stems from the ETF market. Following an impressive streak of 43 consecutive days of inflows, investors withdrew approximately $41 million from these products on Wednesday. This marks the first negative day since the trading instruments began operating in November 2025.
Market observers largely interpret this move not as a fundamental loss of faith, but as rational portfolio management. Given the substantial price appreciation since January, some institutional players are locking in profits. Despite this setback, the broader picture remains stable: the total assets under management (AUM) for issuers continue to hold above the $1.4 billion threshold.
Key Price Level in Focus
The wave of profit-taking has left a clear mark on the price chart. XRP is currently trading at $2.09, having relinquished the previously supportive zone around $2.15. This level has now flipped to become immediate resistance.
Analysts are now closely watching the $2.00 to $2.05 range. Defending this area is considered crucial for maintaining the longer-term upward trajectory. A daily close below the $2.00 mark could potentially open the door for a deeper correction toward the $1.80 region.
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Whales Accumulate Amidst ETF Selling
In a contrasting development, blockchain activity tells a different story. While ETF investors pull capital, data from analytics firms shows a sharp spike in transactions valued over $100,000. This whale activity has reached its highest level since October, indicating that high-net-worth individuals are using the price dip to accumulate more tokens.
A supporting factor is the tightening supply on exchanges. XRP reserves on major trading platforms like Binance have fallen to their lowest point since January 2024. This movement of assets into private wallets is temporarily reducing sell-side liquidity on the open market.
Network Adoption Advances in Asia
Separate from the short-term price volatility, the operational use of the XRP Ledger continues to progress. Reports of deepening partnerships with Japanese financial institutions, including Mizuho Bank and SMBC Nikko, underscore the network’s growing relevance for institutional cross-border settlements.
Overall market sentiment has shifted from greed to cautious optimism. The path forward now hinges on whether institutional demand returns near the $2.00 level and if the accumulating whales can successfully absorb the selling pressure from ETF outflows.
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