XRP extended its losing streak to a sixth consecutive day on Wednesday, with waning institutional demand and a broad market sell-off pushing the token below the critical $2 psychological support. According to data from crypto.news, XRP is down 11.2% over the past seven days, and 20% from its monthly high.
Macro Headwinds and Legislative Delays
The latest weakness stems from escalating U.S.-EU trade tensions linked to a dispute over Greenland, combined with news that the highly anticipated CLARITY Act — a key piece of U.S. crypto market structure legislation — faced further delays in the Senate. In response, investors have adopted a risk-off stance. The Crypto Fear & Greed Index plunged 8 points to 24, entering extreme fear territory, a level historically associated with capitulation or heavy selling pressure.
XRP ETFs Reverse Course After $53.3M Outflow
SoSoValue data shows that the five U.S. XRP ETFs recorded a combined $53.3 million in net outflows on Tuesday, snapping a seven-day inflow streak that had brought in nearly $70 million. The quick reversal signals a cautious institutional outlook as the market waits for clearer signals from trade talks and the legislative process in Washington.
Technical Picture: Trendline Broken, MACD Bearish Crossover
On the daily chart, XRP has fallen below a multi-month descending trendline that had acted as both support and resistance in recent swings. It also lost the horizontal $2 level, a historical anchor for investor sentiment. Other indicators lean bearish: the MACD has formed a bearish crossover and is heading below the zero line, while the Chaikin Money Flow (CMF) index is close to turning negative. The next key support sits at December's low of $1.77.
Fundamental Contradiction: RWA and Stablecoin Growth
Despite the bearish chart, XRP's network fundamentals are improving. Monthly data reveals a 27% surge in RWA-linked value, now exceeding $400 million, alongside an 11% rise in stablecoin market cap on the XRPL. If XRP can stage a sustained close above $2, it may signal that the fundamental narrative is starting to outweigh technical pressure. For now, the path of least resistance remains lower.