XRP Price Prediction as Ripple ETFs Suffer Biggest Daily Outflow

XRP price stabilized today, January 21, rising by over 1% as investors bought the dip. It rose to $1.9070 after falling in the previous eight consecutive days. This retreat may continue after the spot XRP ETFs suffered the biggest outflow since their approval.

XRP ETFs Suffered a Big Outflow

SoSoValue data showed that spot XRP ETFs experienced outflows for the second time since their approval in November. Outflows rose by over $53 million on Tuesday. The previous outflow happened on January 7.

Data shows that these outflows were from Grayscale’s GXRP ETF. Its cumulative inflow stands at $231 million, bringing the net assets to over $213 million.

All five ETFs have had cumulative inflows stands at over $1.22 billion, bringing the net assets to over $1.34 billion. The total assets now account for 1.16% of the market capitalization.

This means that these funds have more room to grow in terms of inflows in the long term. For example, all Ethereum ETFs have $18.4 billion in assets, which is equal to 5% of their market capitalization.

XRP ETFs suffered a big outflow as investors embraced a risk-off sentiment. This pushed stocks and the crypto market downwards.

This sell-off accelerated after the CLARITY Act stalled in Congress last week. It then continued after Donald Trump threatened tariffs on goods from eight European countries.

It is common for cryptocurrency ETFs to experience outflows during bear markets. For example, Ethereum ETFs shed over $229 million in outflows on Tuesday. At the same time, Bitcoin ETFs shed over $4833 million.

Bullish Catalysts Driving XRP Price Growth Potential

On the positive side, XRP price has some bullish catalysts that may help to boost its performance over time. One of these catalysts is that Binance agreed to list Ripple USD (RLUSD). This made it available to millions of users globally.

It will initially list its Ethereum version, with the XRP Ledger one coming later this year. This listing will make it possible for users to trade RLUSD in the spot market. It will also cover portfolio margin utility and include it in Binance Earn.

The listing comes as the RLUSD stablecoin growth has continued in the past few months. It recently crossed the $1.3 billion market cap. It’s a trend that will likely continue once it is added to other chains like Base and Arbitrum.

Meanwhile, data compiled by RWA shows that XRP Ledger has become a major player in the RWA tokenization industry. Its RWA assets have jumped by 43% in the last 30 days to over $400 million.

The other potential catalyst for the XRP price is that the Supreme Court may decide to rule against Donald Trump’s tariffs. That will be an important decision that will likely stall Trump’s tariff threat to the eight NATO members.

Additionally, the Senate Banking Committee will likely make progress on the Market Structure Bill. Such a move would boost the prices of XRP and other coins.

XRP Price Prediction: Technical Analysis

XRP price has retreated in the past few weeks. This meant that the gains experienced earlier this month were bear market rallies. A bear market rally is the short-term rebound that happens when an asset is in a downtrend.

The token has now crashed below the 50-day and 200-day moving averages. Also, it is nearing the key support at $1.7660, its lowest level in October and December last year. It has also dropped below the Ultimate Support of the Murrey Math Lines tool at $1.9530.

Therefore, the most likely XRP price prediction is bearish, with the initial target being at $1.7660. A move below that level will point to more downside, potentially to the psychological level at $1.500. However, there is also a possibility that the coin will bounce back after hitting the floor at $1.7660.