XRP continued to struggle on Wednesday, extending its losing streak to six consecutive days as selling pressure intensified across the broader crypto market. The token slipped below the critical $2.00 psychological level, a move that has raised fresh concerns about a deeper pullback toward December lows.
Over the past week alone, XRP has dropped more than 11%, and losses now stand near 20% from its January peak. This downturn reflects a broader risk-off mood in crypto markets, driven by weakening institutional demand and growing macroeconomic uncertainty.
One major factor weighing on sentiment is rising tension around U.S. and EU trade relations, particularly disputes linked to Greenland. At the same time, optimism around U.S. crypto regulation has taken a hit after delays to the long-anticipated CLARITY Act, which was expected to bring clearer market structure rules. With regulatory clarity pushed further out, investors appear hesitant to increase exposure.
Institutional flows underline this shift in sentiment. According to SoSoValue data, U.S.-listed XRP exchange-traded funds recorded a combined $53.3 million in net outflows, snapping a seven-day inflow streak that had attracted nearly $70 million. This reversal suggests large investors are stepping back while uncertainty remains high.
Risk aversion is also evident in broader market indicators. The Crypto Fear and Greed Index has slid into extreme fear territory, falling to 24. Historically, readings at these levels often coincide with capitulation phases, where selling pressure accelerates as traders rush to reduce risk.
XRP price analysis
From a technical perspective, XRP’s chart paints a bearish short-term picture. On the daily timeframe, price has broken below a multi-month descending trendline that previously acted as both support and resistance. The loss of the $2.00 level further weakens market structure, as this zone has long served as a key sentiment anchor.
Momentum indicators reinforce the downside risk. The MACD has printed a bearish crossover and is trending toward the zero line, while the Chaikin Money Flow indicator is nearing negative territory, signalling declining institutional participation. Together, these signals suggest bears currently have control.
If selling pressure persists, XRP could retest its next major support near the December low around $1.77 in the days ahead.
That said, the bearish technical setup is not the full story. On the fundamentals side, the XRP Ledger continues to show strong growth in real-world asset tokenization and stablecoin activity. Monthly data shows RWA-linked value on the network has jumped 27% to over $400 million, while stablecoin market capitalization has risen by 11%.
As a result, while near-term momentum favours further downside, a sustained recovery above the $2.00 pivot could signal that improving fundamentals are beginning to outweigh short-term technical pressure.
