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XRP spot exchange-traded funds recorded their first weekly net outflow since launching in November, with over $40 million in withdrawals rattling a market already struggling with thin volumes and narrow price consolidation.
The token traded around $1.91 on Friday, roughly 20% below its 2025 peak of $2.41, as the sudden reversal in institutional flows raised questions about momentum that had carried XRP-linked products to $1.23 billion in cumulative inflows.
The scale of the XRP ETF outflow caught market participants off guard. Until now, XRP-linked funds had posted consistent weekly inflows, benefiting from optimism around regulatory clarity and growing interest in alternative crypto ETFs beyond Bitcoin and Ethereum.
This week’s data, however, shows that momentum has cracked. Products issued by 21Shares were hit hardest, with its TOXR fund accounting for a significant share of the withdrawals, according to people familiar with the flow data.
“This is the first real stress test for XRP ETFs,” said an ETF strategist at a digital asset research firm. “An XRP ETF outflow of this size suggests some investors are de-risking rather than doubling down after the initial launch phase.”
While a single week does not define a trend, analysts say the timing matters. The XRP ETF outflow coincided with broader weakness across crypto markets and a noticeable rotation into traditional assets.
XRP price action also softened as on-chain data showed Ripple’s USD-pegged stablecoin, RLUSD, has stopped expanding at its earlier pace. The stablecoin’s market capitalization has remained near $1.3 billion for several months, signaling stabilization rather than growth.
That slowdown has been interpreted by some traders as a sign that payment-related demand—one of XRP’s long-standing use cases—is not accelerating as quickly as expected.
Still, there were bright spots. Binance announced this week that it had listed RLUSD, making the stablecoin accessible to millions of users globally. Ripple has also confirmed plans to expand RLUSD to additional blockchains via Wormhole integration, a move that could broaden its utility over time.
“Listings like this are important, but they don’t always translate into immediate price upside,” said a senior market analyst at a crypto brokerage. “In the short term, the XRP ETF outflow is what traders are reacting to.”
The XRP ETF outflow is unfolding against a challenging macro backdrop for digital assets. Bitcoin has slid toward $89,000, while Ethereum has dipped below $3,000, reflecting a broader cooling in crypto risk appetite.
At the same time, investors have been shifting capital into traditional markets. US equities remain near record highs, with both the S&P 500 and Dow Jones Industrial Average hovering close to all-time peaks. Precious metals have also surged, with gold and silver posting fresh records this year.
This rotation has left altcoins like XRP particularly vulnerable. “When liquidity tightens, assets without immediate catalysts tend to feel it first,” said a portfolio manager at a multi-asset fund.
On the technical side, charts are reinforcing concerns raised by the XRP ETF outflow data. The eight-hour XRP chart shows a steady retreat from the $2.41 high to the current $1.91 area.
XRP has remained below both the 50-period simple moving average and the 50-period exponential moving average, a configuration often viewed as a signal that sellers control short-term momentum.
More notably, technicians point to the formation of a bearish pennant pattern. The structure—defined by a sharp downward move followed by a tightening symmetrical triangle—typically precedes another leg lower once price breaks out.
“The pattern is approaching its apex,” said a technical analyst who tracks XRP closely. “If the downside resolves, the XRP ETF outflow could amplify the move.”
The next major support sits near $1.77, the low recorded on December 19. A drop to that level would represent a decline of roughly 7.5% from current prices.
Whether the XRP ETF outflow marks a temporary pause or the start of a deeper pullback will likely depend on broader market conditions and upcoming catalysts. Stabilization in ETF flows, renewed growth in RLUSD usage, or a broader crypto rebound could all help XRP regain footing.
For now, caution dominates. The combination of the first-ever XRP ETF outflow, slowing stablecoin expansion, and fragile technical structure has traders bracing for heightened volatility.
“XRP isn’t broken,” said one derivatives trader. “But until the ETF flows turn positive again, rallies are likely to be sold.”
As the market watches closely, the XRP ETF outflow remains the key variable shaping near-term price direction—and a reminder that institutional demand can shift just as quickly as it arrives.
