XRP's price has fallen below $2 coinciding with a significant increase in XRP reserves on major exchanges like Binance and Upbit, raising fears of further sell-offs. Whale activity and ETF outflows in January 2026 suggest macro-driven risk-off sentiment, although institutional inflows and growing DeFi demand on the XRP Ledger provide bullish support. Analysts warn of a critical $1.88 support level, where holding could lead to a rebound, but a breach might cause a sharp 45% decline.