XRP ETF $17.72 million withdrawn – Is this a warning signal or just a "natural selection"?

As the cryptocurrency market enters 2026, Ripple [XRP] becomes the focus of attention as it records a nearly 15% increase within the first 10 days. However, this volatility does not last long. From a peak of $2.4, XRP has corrected approximately 12–13%, leading to a notable sell-off wave within its ecosystem.

Pressure from Short-Term Holders

On-chain data reveals a more detailed picture. XRP HODLers with holding periods from 1 week to 1 month have started taking profits, causing their supply ratio to decrease from 5.7% to 4.9% in just 7 days. This action creates significant pressure on the supply.

What is the result? Open interest (Open Interest) has decreased by about $400 million, while XRP ETF funds experienced their first outflow of $17.72 million. According to updated data, XRP is currently priced at $1.98, down 3.98% in the past 24 hours.

However, this correction has another aspect to consider. It raises the question: Is this merely a process of cleansing weak hands before the next move, or is it a sign of a prolonged downtrend?

Ripple’s Strategic Moves Break Negative Forecasts

Interestingly, while the market is volatile, Ripple continues to implement strategic plans. The company has completed the acquisition of Slovexia, a payment platform, to automate processes with an expected handling of about 50,000 transactions daily. This strategy positions XRP as a primary payment option within their system.

Moreover, Amazon Web Services (AWS) plans to collaborate with Ripple to integrate XRPL (Ripple Ledger Protocol) into its infrastructure. If realized, XRP will gain access to services from leading tech companies, expanding its practical applications.

DeFi Data Shows Strong Vitality

Evidence supporting XRP is not limited to partnerships. The total value locked in DeFi protocols (DeFi TVL) has increased by 30% in the first week of 2026. This figure indicates that capital is genuinely flowing into the blockchain ecosystem, rather than collapsing or experiencing a crisis.

In this context, XRP’s 15% “New Year” rally does not seem to be driven by speculation or market manipulation alone. Instead, it reflects real demand and new capital entering the industry, making the 12–13% correction merely a “small breeze” as fundamentals take precedence.

Summary Insights

• Short-term investors are reducing exposure, exerting mild selling pressure on the current market
• Strategic agreements with Slovexia and AWS demonstrate expanding real-world applications of XRP
• The 30% growth in DeFi TVL suggests new capital is supporting functional blockchains
• The 12–13% correction may be a temporary setback before the continuation of the upward trend