XRP extended its decline on the daily chart, printing another red candle as selling pressure persisted.
At press time, XRP traded near $2.05, down roughly 2.35% over 24 hours. Despite the price drop, trading volume surged nearly 196% to about $3.27 billion, pointing to heightened market participation.
Exchange outflows hinted at accumulation
On-chain data showed notable capital movement off exchanges.
CoinGlass data indicated Ripple [XRP] Spot Netflows turned negative, with roughly $22.43 million leaving exchanges over the past day. That shift suggested potential accumulation, as investors appeared to withdraw tokens during the decline.
Derivatives positioning highlighted clear battlegrounds. CoinGlass data showed traders built $36.15 million in Cumulative Long Liquidation Leverage near $2.017 at press time, forming a key support zone.
On the short side, Cumulative Short Liquidation Leverage reached about $21.06 million near $2.113, creating a nearby resistance area.
This left traders focused on whether the price would gravitate toward liquidity clusters.
ETF inflows added a counterweight
Traditional market interest also surfaced.
According to SoSoValue, U.S. Spot XRP exchange-traded funds recorded a daily net inflow of $4.93 million on the 9th of January. Cumulative Net Inflows across U.S. Spot XRP ETFs stood near $1.22 billion at the time of reporting.
That move aligned with steady institutional participation despite short-term weakness.
XRP trend strength stayed elevated
According to AMBCrypto’s technical analysis, XRP appeared bearish on the daily chart and was poised to continue its downside momentum in the coming days.
The key catalysts reinforcing this bearish outlook have been the current market sentiment and the recent loss of the $2.23 support level, along with the 50-day Exponential Moving Average (EMA).
Based on this price action, if XRP fails to hold above the 50-day EMA, it could see another decline of around 6.5% and may drop to the key support level at $1.90.
On the other hand, if the price sustains above this level, a potential reversal could also be possible.
Momentum indicators supported the downside bias. The Average Directional Index printed 28.49, above the 25 threshold, signaling a strong directional trend.
At the time, that trend remained tilted to the downside rather than a reversal.
Even so, some analysts pointed to a higher-timeframe context. A widely followed market analyst noted XRP held horizontal support near $2.02 on the weekly chart.
As long as that level held, broader bullish scenarios remained structurally intact.
Final Thoughts
- XRP’s short-term direction now sits at the intersection of liquidity pressure and structural support.
- If leverage continues to dominate without a spot rebound, volatility could persist. How price behaves around current support may define sentiment next.
