Spot XRP exchange-traded funds (ETFs) have continued to attract the interest of institutional investors, posting inflows every day of the past week amid improving regulatory clarity.
Unfortunately, these positive fundamentals have not helped the price of the cross-border payments token hold above the psychologically important $2 support zone.
XRP Falls Below $2 As Crypto Markets Correct
The Ripple-linked XRP token is consolidating after a strong start to 2026. XRP slid below the $2 mark on Monday, marking six straight days of declines. The asset was valued at $1.95 as of press time, down 0.3% over the last 24 hours.
The correction extends across the broader crypto market, with Bitcoin dropping below $92,000 and Ether (ETH) testing support at $3,000. The drop came after U.S. President Donald Trump reignited trade tensions, threatening new tariffs on Denmark and other European countries over disputes tied to Greenland.
Over $873 million in long positions were liquidated, with Bitcoin accounting for $220 million of that total. $38 million in the long liquidations can be attributed to XRP — the highest since Nov. 22, 2025.
XRP Ignores Regulatory Clarity, ETF Demand
Notably, XRP’s retreat comes amid improving regulatory conditions and increasing institutional demand.
Ripple recently obtained preliminary approval for an e-money license in Luxembourg, a move that would allow the company to expand regulated digital-asset payment services across Europe. The San Francisco-headquartered company is also seeking a CASP license under the EU’s MiCA framework, positioning the XRP ecosystem to function inside the bloc’s new regulatory regime.
Meanwhile, institutional appetite remains relatively steady. Spot XRP ETFs have continued to draw in money from investors, with cumulative net inflows now approximately $1.28 billion and only one single withdrawal day since their launch in November 2025.
XRP has also witnessed a sharp rise in on-chain demand, as reflected by the increase in transactions to a six-month high last week. According to data from XRPScan, the number of transactions carried out on the XRP Ledger surged to 2,575,560 on Wednesday, reaching levels last seen in July of last year.
Despite these longer-term positives, the XRP price has underperformed, falling 19% from its eight-week high of $2.41, set on January 6.
Source: https://zycrypto.com/xrp-price-slides-below-2-despite-persistent-etf-demand-regulatory-tailwinds/
