XRP: How record $98M ETF outflow raises risk of $1.26 drop
XRP is having a rollercoaster week, with massive inflows followed by the largest outflows ever recorded.
Ripple [XRP] experienced a volatile week that left investors uneasy. On the 29th of January 2026, the token recorded $6.9 million in ETF inflows, sparking optimism for future growth.
That optimism was short‑lived. Just a day later, on the 29th of January, Grayscale withdrew a massive $98 million in ETFs, the largest ETF outflow XRP has ever seen.
Even so, some institutions remained supportive. Nasdaq purchased $2.1 million worth of XRP, Bitwise added $2.41 million, and Franklin invested $972.76K. These inflows helped offset part of the damage, but total daily outflows still reached $92.92 million.
By the end of the week, cumulative outflows stood at $69.05 million, underscoring the scale of selling pressure despite pockets of institutional support.
Grayscale’s $98 million withdrawal wasn’t just a bump in the road; it was a seismic event, leaving a huge dent in investor confidence.
However, Nasdaq, Bitwise, and Franklin did not follow Grayscale’s lead. Instead, they continued purchasing XRP, highlighting the unpredictable nature of institutional sentiment.
What looks like strong inflows today can just as easily turn into outflows tomorrow. The pressing question now is: where does XRP go next after such a dramatic swing?
What does this mean for XRP’s price?
XRP’s price took a severe hit after the massive outflows, plunging 10% as of writing. This drop exposed the fragile nature of institutional sentiment and its devastating effect on XRP’s price.
For XRP to recover, it must break through key resistance levels, particularly the $2 mark. However, its failure to hold the $1.62–$1.75 demand zone has left the token exposed to further downside, with the risk of a drop toward $1.26.
Ripple’s XRP Community Day
Ripple announced on the 29th of January that XRP Community Day 2026 will take place on the 11th and 12th of February.
That said, Ripple CEO Brad Garlinghouse and President Monica Long are ready to discuss XRP’s explosive growth beyond cryptocurrency, including its strategic move into ETFs and ETPs.
Final Thoughts
- Grayscale’s massive outflows cast doubt on XRP’s short-term prospects, but institutional interest remained.
- The token’s 10% drop to the demand zone provided the best buying opportunity ahead of XRP Community Day.
