XRP Technical Outlook Flips Bearish as Psychological Support at $2.00 Tested

XRP’s early-2026 rally stalled on Jan. 8 as the token fell below $2.10, coinciding with its first-ever ETF outflows of about $41 million since launch.

Market correction erased recent gains as XRP retreated below the $2.10 support level, indicating a sharp deceleration of bullish sentiment that had defined the first six days of 2026. This volatility coincided with the first recorded net outflows from XRP spot exchange-traded funds (ETFs), totaling approximately $41 million.

According to Bitstamp data, the asset established an intraday floor at $2.06 at 9:45 a.m. EST before staging a modest recovery to reclaim the $2.10 handle. This correction followed a massive surge just two days prior when XRP peaked at approximately $2.41, its highest valuation since mid-November 2025.

Why Did This Happen?

XRP’s drop below $2.10 was driven by ETF outflows and technical weakness. The token’s price action suggests a structural shift from a bullish to a corrective or bearish phase.

The 14-day RSI plummeted to 28.43 on Jan. 8, placing the asset firmly in oversold territory, while the MACD issued a sell signal with a value of -0.038. Additionally, XRP has slipped below its 200-period moving average on several intraday charts, a move frequently interpreted as a sign of structural weakness.

The first recorded net outflows from XRP spot ETFs occurred on Jan. 8, totaling approximately $41 million. These outflows came after a period of record inflows, which had boosted XRP’s market capitalization to $144 billion.

How Did Markets React?

XRP’s price has come within touching distance of its psychological support at $2, a scenario that appeared highly improbable during the highs of Jan. 6. This sharp reversal from the $2.41 peak has effectively shifted short-term momentum from a bullish to a corrective or bearish phase.

The broader crypto market reacted to XRP’s correction as well. The total crypto economy fell below the $3.3 trillion milestone following the token’s decline.

The token’s correction also coincided with a broader market correction, erasing the majority of its year-to-date gains. XRP’s recent price action has led to increased uncertainty among investors, with many reevaluating their positions in the asset.

What Are Analysts Watching Next?

Analysts are closely monitoring key technical levels to determine whether XRP can stabilize above $2.00. If the price holds above this level, it could indicate the start of a recovery. If not, further downside could be expected.

The 14-day RSI and MACD remain important indicators for assessing the asset's momentum. The RSI is currently in oversold territory, which could suggest a potential bounce. However, the MACD remains in negative territory, signaling a strengthening downward trend.

XRP has also slipped below its 200-period moving average on several intraday charts, a sign of structural weakness that could continue to pressure the token. The 14-day simple moving average is now acting as dynamic overhead resistance, with price action trending significantly below recent averages.

The token’s movement below the $2.00 psychological level has also raised concerns among investors. If XRP continues to decline, the next key support level would be around $1.96 according to analysis.

The broader market’s reaction to XRP’s correction will also be a key factor in determining its near-term trajectory. If other cryptocurrencies also experience weakness, it could reinforce a more bearish outlook for XRP.

Investors are also watching for signs of renewed buying interest, particularly from institutional investors. Recent inflows into XRP ETFs have been strong, but the recent outflows suggest that some investors are taking profits or repositioning their portfolios.