XRP fell 12% to $2.42 on January 6, marking its highest value since mid-November 2025, before hovering around the current $2.35 mark.
Related Reading: Here’s Why Shiba Inu Prices Have Jumped Over 13%
The jump coincided with strong inflows of capital into XRP-focused exchange-traded funds (ETFs), technical exit patterns, and sharp reductions in short positions. These factors have combined to drive one of the most remarkable rallies in the crypto market discovery phase in early 2026.
XRP's price trends to the upside on the daily chart. Source: XRPUSD on Tradingview
XRP ETF Entry and Institutional Oil Profits
Spot XRP ETFs recorded $48 million in inflows on January 5 and 6, marking the largest daily inflows since their launch in November 2024.
Over the past eight weeks, these ETFs have had consistent inflows of about $1.23 billion, reflecting the growing institutional appetite for XRP exposure. The increased buying pressure in these currencies helps to absorb the selling pressure and reduce the available supply in the trade.
Vincent Liu, Chief Investment Officer at Kronos Research, noted that ETF entry combined with XRP breaking key resistance levels and strong volume has increased traders’ appetite.
This institutional interest is supported by legal clarity following Ripple’s 2025 agreement with the US Securities and Exchange Commission (SEC), which has removed a major obstacle to takeover.
Technical Breaks and Short Pressures Accelerate Price Movements
Technical analysts point to a breakout of the falling wedge pattern, with XRP maintaining levels above its 50-day moving average, a good indicator for bullish traders.
During the bull run, more than $250 million in short positions were liquidated within one hour, adding fuel to the rally by forcing short sellers to hedge their bets.
Famous trader John Bollinger, founder of Bollinger Bands, noted that XRP is following the same bullish pattern as Bitcoin and Ethereum but with a slightly weaker momentum.
However, he suggested that the price of XRP could track Bitcoin’s upward trend, with analysts pointing to a potential target near $3.50 if current support levels hold.
Broad Market Context and Future Outlook
XRP’s rally comes amid broader crypto market gains, with Bitcoin and Ethereum up 7.4% and 9.3% respectively over the past week. On-chain data shows a decrease in XRP balances in mid-exchange, suggesting a reduction in selling pressure.
Institutional support continues to grow, with PwC recently endorsing Ripple as a key player in blockchain-based financial services. Major banks such as Standard Chartered have projected XRP prices to reach $8 by the end of 2026, based on Ripple’s growing integration into cross-border payments and settlement solutions.
Related Reading: John Bollinger: Bitcoin BB Squeeze Breakout Targets $107,000
As market sentiment improves and regulatory uncertainty eases, XRP appears poised to benefit from both technical momentum and growing institutional demand. Traders will be watching closely to see if XRP can sustain gains above key resistance areas around $2.30 and potentially push to higher price targets.
Cover image from ChatGPT, XRPUSD chart on Tradingview
