XRP Today's News: $40.8 Million ETF Outflows, Bulls Hold the $2.00 Critical Level

On January 7th, the US XRP ETF experienced a net outflow of $40.8 million, ending its golden start. XRP has declined for three consecutive days, falling 2.01% on January 8th. Despite short-term pressure, the market structure bill’s review scheduled for January 15th remains unchanged with a mid-term target of $3.

XRP’s First ETF Net Outflow Ends the Myth of a Golden Start

(Source: Santiment)

On January 7th, the US spot XRP ETF market reported a net outflow of $40.8 million, marking the first net outflow since the launch of Canary XRP ETF (XRPC), dealing a blow to market sentiment. 21Shares XRP ETF (TOXR), the newest among five active ETFs, ended XRP spot ETF’s golden start. The net outflow on Wednesday brought the fund’s total net outflow since inception to $8.18 million.

Meanwhile, Canary XRP ETF (XRPC), Bitwise XRP ETF (XRP), Franklin XRP ETF (XRPZ), and Grayscale XRP ETF (GXRP) have continued to avoid net outflows since inception. This divergence indicates that later entrants face greater market skepticism, with investors preferring first-mover products, a typical advantage in the ETF market.

The Wednesday outflow coincides with WisdomTree withdrawing its S-1 filing for its XRP spot ETF, and Morgan Stanley shifting focus from XRP to submitting S-1 filings for BTC and SOL spot ETFs. The simultaneous emergence of these two negative news items amplified market panic, leading investors to question whether XRP ETF attractiveness is waning. The outflow from 21Shares XRP ETF also confirms the rationality behind WisdomTree’s withdrawal and Morgan Stanley’s shift toward BTC and SOL.

However, it must be noted that a single-day outflow does not indicate a trend reversal. After the breakthrough at the start of 2026, as the broader crypto market entered consolidation, XRP’s three-day decline is a technical adjustment. The initial outflow may be profit-taking rather than a confidence collapse. The trend of capital flow on January 8 will determine the trading tone for Friday.

Market Structure Bill as the Major Fundamental Support

Despite XRP being overbought on January 8th, the fundamentals remain bullish, confirming a short- to mid-term bullish price outlook. The US Senate Agriculture Committee and Senate Banking Committee will review the market structure bill on January 15th, likely paving the way for legislation favorable to cryptocurrencies. Although the US Securities and Exchange Commission (SEC) has ruled XRP as a non-security in the “Ripple vs. SEC” case, XRP remains sensitive to legislative developments.

Eleanor Tret, host of a US crypto program, dismissed speculation that the market structure bill lacks bipartisan support: “The Senate Agriculture Committee has been working for months to ensure its draft is bipartisan. It’s hard to imagine this effort failing at the last minute. Don’t forget, last summer, the House Agriculture Committee passed parts of the CLARITY Act with an overwhelming bipartisan vote of 47 to 6.”

Historical data supports the legislative catalytic effect. On July 17th, after the US House submitted the market structure bill to the Senate, XRP’s price surged 14.69%. In early January, the US Banking Committee announced on December 31st that it would review the bill on January 15th, after which XRP’s price increased by 33%, reaching a high of $2.4151 on January 6th. The voting results on January 15th are likely to trigger the next XRP rally.

The bill is expected to pass the Senate Banking Committee next week, then merge with the Senate Agriculture Committee’s version. After approval of the Agriculture Committee’s text, it will be submitted for full Senate vote, then returned to the House for final approval, and finally sent to President Trump for signing.

Technical Outlook and Price Targets

(Source: Trading View)

On January 8th, XRP fell 2.01%, after a 5.97% decline the previous day, closing at $2.1217. The selling pressure on this token was greater than the overall crypto market, which declined 0.69%. XRP has declined for three consecutive days, breaking below the 200-day moving average but remaining above the 50-day moving average. Although the moving averages indicate short-term bullishness but long-term bearishness, the fundamentals remain bullish and dominant.

Key Technical Levels

Support levels: $2.00 (psychological level), $1.75, $1.50

50-day EMA support: $2.0729

200-day MA resistance: $2.3412

Resistance levels: $2.5, $3.0, $3.66

From the daily chart, if the price breaks above $2.2, the 200-day MA will act as resistance. Continued breakout above the 200-day MA indicates a trend reversal to bullish, with potential to challenge resistance at $2.5. The progress of the market structure bill and strong demand for XRP spot ETF reinforce the short-term bullish outlook, with a target of $2.5.

Enhanced practical value, expectations of a June rate cut by the Federal Reserve, and confidence that the Senate will pass the market structure bill all strengthen the long-term bullish price targets: mid-term (4-8 weeks) $3.0, long-term (8-12 weeks) $3.66. Staying above $2.0 is crucial for a constructive bias; falling below this level would expose the downward trend line and invalidate the bullish structure.