XRP Today's News: ETF Loses 93 Million in a Single Day, Market Structure Bill Becomes a Lifeline

XRP ETF net outflow of $92.92 million hits a new high, Grayscale exits $98.39 million ending 6 days of inflows. Price drops 5.37% to $1.8054, breaking double moving averages. A risk-off wave hits, but the Senate Agriculture Committee passes the Market Structure Bill to support the medium-term outlook. Technically, a break above $1.85 is needed to challenge $2, with a medium-term target of $2.5.

Largest single-day outflow in history ends consecutive net inflows

On January 29, the US XRP spot ETF market experienced a net outflow of $92.92 million, marking the largest single-day net outflow since the Canary XRP ETF (XRPC) launched in November last year. Grayscale XRP ETF (GXRP) saw a net outflow of $98.39 million, ending six consecutive days of inflows in the XRP spot ETF market. This sudden reversal has sparked market concerns about XRP’s short-term prospects.

Meanwhile, Canary XRP ETF, Bitwise XRP ETF, and Franklin XRP ETF all recorded net inflows, limiting losses. This divergence indicates differing judgments among investor groups across various ETFs. The outflow from Grayscale products may reflect higher management fees prompting investors to shift to lower-cost competitors, rather than a loss of confidence in XRP itself.

The flow of funds in XRP spot ETFs continues to influence XRP’s supply-demand balance and price outlook. Since launch, the US XRP spot ETF market has accumulated net inflows of $1.17 billion, supporting a bullish outlook. Although the single-day outflow of $92.92 million is substantial, it remains manageable relative to the total inflows. The key question is whether this outflow is a short-term risk-off reaction or the start of a trend reversal.

The US Bitcoin spot ETF market has also intensified negative sentiment, with net outflows reaching $500 million (pending iShares Bitcoin Trust data). This synchronized outflow across assets suggests macro risk appetite shifts as the driving factor, rather than specific negative news about XRP. When the overall crypto market faces sell-offs, XRP as a risk asset naturally gets affected.

Dual interpretations of ETF fund outflows

Short-term risk-off reaction: Poor tech earnings and geopolitical risks trigger risk aversion, leading to temporary withdrawal from risk assets

Cost-driven shift: Outflows from high-fee Grayscale products prompt investors to move to lower-cost competitors

Tech stocks drag and Fed hawkish chain reaction

XRP follows broader crypto market trends, with risk-off sentiment causing large outflows from US Bitcoin spot and XRP spot ETFs, overshadowing legislative progress on Capitol Hill. Poor earnings reports from US tech giants and large AI-related spending plans unset investors.

Fed Chair Powell’s hawkish comments triggered concerns over AI spending, causing the Nasdaq 100 to decline on January 29 (Thursday). Powell’s ambiguous stance on further rate cuts dampened demand for crypto spot ETFs, as market expectations of a Fed rate cut in early 2026 cooled midweek.

Concerns over US corporate AI spending and investment returns have heightened market pessimism. Although the Nasdaq rebounded from a low of 23,233 points intraday, it ultimately fell 0.72%, closing at 23,685. This tech weakness has a chain reaction effect on the crypto market, as investor groups overlap heavily and risk preferences are similar.

Progress of the Market Structure Bill provides medium-term support

Despite risk sentiment causing XRP spot ETF outflows, legislative progress on Capitol Hill reaffirms a short- to medium-term bullish outlook for XRP. On January 29, the US Senate Agriculture Committee released a draft of the Market Structure Bill, marking a key step forward.

Ripple CEO Brad Garlinghouse commented on the bill’s progress: “Over the past two weeks, efforts to push the Market Structure Bill through have been intense. While the Banking Committee cleared the deadlock (thanks to Senator Tim Scott!), credit should also go to the Senate Agriculture Committee and Chair John Boozman for successfully submitting the bill for review today.”

Garlinghouse reiterated the importance of crypto legislation: “As I’ve said before, clarity is better than chaos. The legislative process may be complex and chaotic, but for this generation and future generations of crypto entrepreneurs, builders, and users, as this technology becomes more integrated into our global financial infrastructure, clear legislation is absolutely necessary.”

Now, focus shifts to the Senate Banking Committee and its draft bill. After Coinbase withdrew support on January 15, the committee delayed review and voting on the draft. As leaders in banking and crypto seek consensus on wording related to stablecoin yields, no new review date has been announced. Passage of the committee draft is crucial for the Market Structure Bill to be brought to a full Senate vote.

Technical level $1.70 as a critical bullish structure line

(Source: Trading View)

On January 29, XRP fell 5.37%, after a 0.30% decline the previous day, closing at $1.8054. The token’s movement aligns with the overall crypto market cap, which dropped 4.77%. Thursday’s sell-off caused XRP to break below the 50-day and 200-day moving averages, indicating a bearish bias. However, favorable fundamentals continue to offset technical bearishness, reaffirming a bullish outlook.

On the daily chart, breaking above $1.85 will target $2.0. Sustained breakout above $2.0 could allow bulls to challenge the 50-day moving average (around $2.0010). Importantly, a sustained break above the 50-day MA would signal a reversal of the short-term bullish trend. Such a reversal would open the door to testing $2.2. Breaking above $2.2 would pave the way to challenge $2.5 and the 200-day moving average ($2.2697).

However, XRP fell to a 2026 low of $1.7119 on Friday, January 30, and the month of January declined 5%, putting bullish structure and short- to medium-term targets at risk. If the price continues to break below the downtrend line and falls below $1.70, the bullish structure will be invalidated, indicating a trend reversal to the downside.

Despite the outflows in XRP spot ETF markets on Thursday, the cumulative net inflows since launch support a positive short-term outlook (1-4 weeks), with a target of $2.0. Additionally, progress on the Market Structure Bill, increased utility of XRP, and expectations of multiple Fed rate cuts further reinforce long-term bullish price forecasts: $2.5 in the medium term (4-8 weeks), and $3.0 in the long term (8-12 weeks).