• XRP fell below $2, losing short-term support while trading near $1.97.
• Analysts see potential for a 5X rally if key accumulation zones hold.
• Spot ETFs continue inflows, supporting investor confidence despite recent price pullback.

Ripple’s XRP has dropped below the $2 mark, sparking concern among traders. The token fell 4% amid broader market pressure, reaching an intraday low of $1.906 before rebounding slightly to $1.97. Despite the pullback, optimism persists thanks to steady inflows into spot XRP ETFs. Investors are watching closely as XRP consolidates around key support zones, balancing short-term volatility with long-term bullish prospects.

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XRP Faces Selling Pressure

Since its January 6 highs near $2.40, XRP has dropped almost 18%, reflecting market-wide bearish sentiment. The token briefly held between $2.05 and $2.06 before slipping lower. Open interest declined by 10% to $3.58 billion, while daily trading volume surged 166% to $3.66 billion. This increase in activity suggests active trading despite selling pressure.

Analyst Crypto Patel remains bullish on XRP’s long-term potential. He highlighted that the token trades above a confirmed multi-year breakout zone on higher-timeframe charts. This setup suggests XRP may prepare for another significant upside move after a prolonged accumulation phase. Patel pointed out that the token already rose roughly 600% after breaking out near $0.60, showing strong historical expansion.

Technical patterns also support bullish sentiment. A descending wedge breakout spanning 2020 to 2024 has acted as a key catalyst. XRP is currently consolidating near a fair value gap and accumulation zone between $1.90 and $1.30. Holding above $1.30 is critical, as closing below this level could invalidate the bullish structure. If support holds, upside targets could reach $3.50, $5.00, $8.70, and even $10.

Spot ETF Inflows Provide Confidence

ETF inflows are playing a key role in keeping investor sentiment positive. Data from SoSoValue shows that XRP ETFs have consistently attracted assets since approval late last year. Net inflows rose $1.12 million on January 16, pushing cumulative inflows to $1.28 billion. Grayscale’s GXRP ETF added $287 million, reaching $291 million in total assets, while Bitwise’s XRP ETF added $310 million, also hitting $291 million.

So far in 2026, spot XRP ETFs have brought in more than $108 million, bringing total assets above $1.52 billion. These inflows indicate institutional and retail interest, helping to balance short-term volatility. While the market faces pressure, XRP’s technical setup and ETF support suggest room for upside. Traders may see consolidation around the $1.90-$2.00 range before renewed upward momentum.

Analysts expect a possible multi-fold rally if historical patterns repeat and support holds. Investors should monitor both price action and ETF flows to gauge potential movements. XRP has dropped below $2 but remains above key accumulation zones. Technical patterns and ETF inflows provide cautious optimism. Analysts highlight potential upside targets between $3.50 and $10.