XRP extended its recent downturn after slipping below the psychologically important $2 level, marking a sixth consecutive day of declines.
The move came amid a broader cryptocurrency sell-off, triggered by renewed trade war fears following comments from U.S. President Donald Trump regarding potential tariffs linked to Greenland.
Bitcoin fell toward the $92,000 level during the same period, while Ether drifted closer to key support near $3,000, adding pressure across the digital asset market.
Data shows that more than $875 million in crypto positions were liquidated over the weekend, impacting roughly 250,000 traders across major exchanges.
XRP accounted for $39.5 million in long liquidations, its highest daily total since late November 2025, highlighting the intensity of the recent pullback.
Derivatives Demand Remains Under Pressure
XRP derivatives activity has continued to soften, reflecting weakening short-term trader confidence.
Open interest in XRP futures declined to $3.56 billion, down from a yearly peak of $4.55 billion reached earlier in January.
The 21.7% drop mirrors patterns seen during previous corrections, including a similar decline observed in October 2025.
Analysts note that falling open interest alongside declining prices often signals reduced appetite for leveraged exposure, potentially opening the door to further downside volatility.
ETF Inflows And Onchain Growth Fail To Lift Price
The price weakness has occurred despite continued institutional interest through U.S.-listed spot XRP exchange-traded funds.
ETF data shows that XRP products recorded daily inflows throughout last week, with cumulative inflows now standing at approximately $1.28 billion.
Total assets across XRP ETFs have risen above $1.52 billion, underlining sustained demand from long-term investors.
Onchain activity has also strengthened, with transaction counts on the XRP Ledger climbing to a six-month high.
Network data indicates that more than 2.57 million transactions were processed in a single day last week, a level last seen in mid-2025.
Despite these supportive fundamentals, XRP has dropped roughly 18.5% from its early January peak near $2.41.
Key Support Levels Come Into Focus
Market participants are now closely monitoring whether XRP can stabilize above its next major support zone.
Onchain cost basis data suggests heavy accumulation around the $1.96 level, where a significant volume of XRP has changed hands over the past six months.
Below that, another large concentration of buyers sits between $1.78 and $1.80, an area that has not seen a daily close below it since April 2025.
If that range fails, analysts warn that XRP could slide toward $1.61, a prior local low that aligns with longer-term technical support.
Momentum indicators show growing downside pressure, with the relative strength index reaching its lowest level of the year so far.
A sustained break lower could challenge bullish sentiment unless buyers step in to defend these historically important levels.
