XRP faces a sell-off at $1.97: The truth behind the $17.72 million ETF outflow

At the beginning of 2026, XRP experienced a short-term miracle but then fell into trouble. From a strong rally at the start of the year to now facing a 12-13% deep correction, this digital asset once regarded as the “hope of the payments sector” is undergoing a severe market test. What is more worth paying attention to is the market signals released by this correction.

Rapid Arbitrators’ Retreat: What Does On-Chain Tracking Show?

According to on-chain data tracking, short-term holders of XRP (with a holding period of 1 week to 1 month) are exiting in large numbers. In just the past 7 days, the proportion of these traders’ positions dropped from 5.7% to 4.9%, a decline of nearly 13%. This seemingly small change reflects a larger phenomenon—quick profit-takers are cashing out.

What are the results? This volatility not only increased selling pressure in the market but also caused ripples in the futures market. Approximately $400 million of open positions were liquidated in a short period, and XRP ETF products experienced their first single-day outflow since launch—amounting to $17.72 million. These figures indeed increased market pressure, prompting participants to reassess XRP’s trajectory.

Currently, XRP hovers around $1.97, with a 24-hour decline of about -3.95%. Although it is still far from the all-time high of $3.65, short-term adjustments are inevitable.

Hidden Support Power: Ripple’s Strategic Layout Is Changing the Game

But is that the whole story? Not quite.

Although on-chain data shows short-term pessimism, Ripple’s latest moves tell a different story. Amid the market adjustment, this payments giant has not stopped expanding but has accelerated its strategic deployment.

First is the acquisition of Slovexia. This payment automation company is expected to process about 50,000 transactions daily, with XRP being integrated as its core payment option into Ripple’s payment gateway. This is not just an acquisition case but a key step in transforming XRP into a practical application tool.

More importantly, the partnership agreement with Amazon AWS. This cloud computing giant plans to integrate XRPL (Ripple’s blockchain protocol) into its cloud ecosystem, meaning XRP could become a payment option available to millions of AWS users. Such cooperation signifies a shift from “speculative asset” to “infrastructure component.”

30% Growth in DeFi Ecosystem: What Does This Rebound Mean?

It is worth noting that during the same period XRP experienced a correction, the total value locked (TVL) in DeFi increased by 30% in the first week of 2026. The timing of this data change coincides perfectly, implying a key fact—capital has not truly left but is being reallocated.

The simultaneous withdrawal of quick arbitrators and new strategic collaborations strongly indicate that XRP’s 12-13% correction may merely be a short-term liquidity reshuffle rather than a sign of fundamental deterioration.

Conclusion: Opportunities Amidst Pressure

• On-Chain Anomalies: The concentrated selling by short-term holders and large ETF outflows have increased market pressure, but the scale is relatively controlled, and there is no large-scale institutional panic.

• Fundamental Support: Ripple’s deals with Slovexia, AWS collaboration, and the synchronized growth of the DeFi ecosystem all point to real application deployment rather than hype cycles.

• Market Psychology: This correction resembles a rebalancing of bullish and bearish forces rather than a fundamental reversal. Once short-term profit-taking is complete, new growth catalysts may follow.

In today’s fiercely competitive payments sector, every XRP adjustment could be an opportunity to rethink its strategic value.