This week marked a notable shift for the XRP exchange-traded funds (ETFs), as they experienced significant outflows for the first time since their launch. Following a remarkable streak of daily net inflows, the funds faced a downturn as Ripple“s price fell below the critical $2 threshold.
On Tuesday, January 7, the XRP ETFs recorded their first negative trading day after a continuous inflow period that spanned almost two months, initiated by the debut of Canary Capital”s XRPC on November 13. The earlier gains were not enough to stave off the outflow trend, culminating in a challenging trading environment.
Despite an influx of nearly $57 million in the weeks prior, the tide turned dramatically when investors withdrew $53.32 million in a single day, marking the largest daily net outflow for the XRP ETFs to date. The recent four-day trading period culminated in total net outflows of $40.64 million, a stark contrast to the previous inflow levels that peaked at $1.28 billion.
The price of XRP mirrored the ETF performance, initially surging to $2.40 at the start of 2026 before experiencing a sharp decline to $2.10, eventually settling around $1.90. Analysts suggest that the current price movements are critical for XRP“s short-term outlook, particularly as it appears to have returned to a converging pattern following a false breakout. The potential for a rally hinges on a decisive breakout from this pattern.
Recent insights from Santiment indicate that trader sentiment has turned bearish on Ripple, but this could potentially pave the way for a future price recovery as market dynamics evolve. The coming days will be pivotal in determining whether XRP can regain its momentum amid the ongoing volatility in the cryptocurrency landscape.
