XRP Crashes 15% In 2 Days As ETF Outflows Hit $41M: Is The Rally Over?

U.S. spot XRP (CRYPTO: XRP) ETFs reported their first net outflows on Wednesday, ending a 36-day streak as $40.8 million exited, led by $47.25 million leaving the 21Shares XRP ETF (CBOE: TOXR).

First Red Day Since November Launch

The outflows mark a notable shift after XRP ETFs accumulated $1.25 billion in total net inflows since the Canary XRP ETF (NASDAQ:XRPC) launched on Nov. 13, 2025.

The $40.8 million outflow represents approximately 3% of cumulative inflows since launch.

21Shares’ TOXR saw $47.25 million move out, while funds from Canary, Bitwise, and Grayscale saw comparatively small net inflows of around $2 million each, partially offsetting the exodus.

Rachael Lucas, BTC Markets Crypto Analyst, said the outflows appear to be profit-taking after XRP rallied to $2.40 from $1.80 in a week, combined with a broader market pullback.

Lucas noted that on-chain indicators, including historically low exchange reserves and elevated transaction volumes, continue to signal underlying strength. If inflows resume, XRP could retest the $3 level.

Bitcoin And Ethereum ETFs Also Bleed

Alongside XRP ETFs, spot Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) funds saw sizable net outflows Wednesday. 

Bitcoin ETFs reported a total net outflow of $486 million, where Fidelity Wise Origin Bitcoin Fund (CBOE: FBTC) lost $247.6 million and BlackRock’s IBIT (NASDAQ:IBIT) saw $130 million leave the fund.

Ethereum ETFs saw a combined net outflow of $98.5 million on Wednesday, led by $52 million exiting Grayscale’s ETHE. 

This marks the first net outflow day for ETH ETFs in 2026 after seeing $457 million in inflows in the first three trading days of the year.

Lucas said the outflows reflect typical post-rally rebalancing and leverage unwinds following Bitcoin’s surge to $94,000.

Min Jung, Research Associate at Presto Research, said crypto has been weaker relative to other asset classes, with investors feeling more comfortable taking positions in stocks than in crypto. 

XRP Technical Breakdown Confirms Failed Rally

Price Prediction for XRP By TradingView

XRP is down over 3% on the day, erasing the previous week’s gains and breaking below critical support at the 20 EMA of $2.03. 

After rallying 22% from the December low of $1.77 to $2.16 by Jan. 5, XRP gave back those gains in just three sessions.

The breakdown below the 20 EMA marks the first failure to hold this level since the December recovery began. 

This failed breakout attempt at $2.45-$2.50 triggered aggressive selling, with price now sandwiched between the 20 EMA at $2.03 and 50 EMA support at $2.07. 

The Supertrend flipped to bearish at $1.96, sitting just below current price as the next major support.

XRP dropped 15% from the Jan. 5 high in just two days, negating much of the December recovery effort. 

Upside targets: Must reclaim $2.07 (50 EMA) to stabilize. Beyond that, $2.16 previous resistance, then $2.22 (100 EMA). Clearing $2.34 (200 EMA) would restore bullish structure.

Downside risks: Support at $2.02 (20 EMA), then $1.96 (Supertrend). Breaking $1.95 targets $1.77 December low with potential extension to $1.60.

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