TL;DR:
- US-listed XRP ETFs recorded net outflows of $53.31 million on January 21.
- The asset’s price lost the psychological support of $2 and is currently trading near $1.89.
- Geopolitical tensions and Trump’s tariff threats have driven global risk aversion.
Wednesday, January 21, was marked by extreme caution in the institutional market. The XRP ETF outflows and token price reflect a shift in investor sentiment, as they opted to reduce exposure following the second consecutive day of massive withdrawals, according to SoSoValue data.
This divestment trend coincides with evident technical weakness in short-term charts. After losing the $2.00 mark, XRP is struggling to find stability, while momentum indicators like the RSI suggest that although pressure has eased, bearish sentiment still dominates the sector.
The macroeconomic environment is another factor playing a leading role in this pullback. Trump’s recent tariff threats toward the European Union have generated a capital movement toward haven assets, draining liquidity from risk assets like cryptocurrencies.
Technical Analysis and Key Levels for XRP Investors
Despite stabilization attempts, the MACD indicator remains in the red, confirming that sellers maintain control of the market. Consequently, traders are closely watching the $1.85 to $1.90 range, a level that could determine the price direction in the coming days.
On the other hand, a recovery in inflows to exchange-traded funds will be a necessary catalyst to restore institutional confidence. If global risk sentiment improves, XRP could attempt a new assault on the $2 zone, although caution remains the prevailing norm for now.
In summary, the crypto market is in a “wait and see” phase while assimilating geopolitical news from Davos. Only a confirmation of exhausted selling pressure and a shift in the macro narrative will allow the token to recover the ground lost recently.
