XRP is trading above $2, and a surge in institutional investor flows suggests that the altcoin’s rise is only just beginning.
Although XRP (XRP) remains above $2, the move does not yet confirm a bullish turn, and stronger technical validation is expected at higher levels, analysts say.
Important points:
XRP regained its 50-day moving average in early January, showing early signs of a trend reversal.
Institutional capital inflows into XRP hit an all-time high last week, a sharp departure from the market, which saw large outflows during the same period.
On-chain volume metrics suggest that the move in XRP above $2 is driven by balanced participation rather than speculative excess.
Inflow of XRP investment products supports price stability
XRP started 2026 by regaining a bullish position above its 50-day simple moving average (SMA) during the first weekend of January. This move is consistent with a retest of the classic downtrend, a structure that could lead to higher prices if buyers maintain control. However, price trends so far suggest stabilization rather than acceleration.
This stability seems to be reinforced by the participation of institutional investors. While the digital asset market recorded outflows of approximately $454 million, marking its worst weekly performance since mid-2023, XRP price moved in the opposite direction.
According to CoinShares data, weekly inflows into XRP were $45 million, an increase of over 400% from the previous week and in contrast to widespread market outflows.
This contrast has allowed XRP to remain above $2 even as liquidity conditions tightened elsewhere, highlighting that its recent strength is not purely sentiment-driven.
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Volume data and trader outlook define the range
CryptoQuant data adds further nuance. Binance’s Volume Z-score is hovering around 0.44, with trading volume slightly above the 30-day average but firmly within the neutral range.
This suggests that the price of XRP is not rising due to speculation, but rather due to the balanced activity of buyers and sellers, a condition seen during the accumulation phase.
Meanwhile, market analyst Credible Crypto said that once the “triple tap” at the top of the range is completed, there will be two paths left: a pullback towards $1.77 within a larger uptrend, or a base near $2 that continues to be bullish. Considering the current market, analysts support the uptrend and target higher untapped levels of around $3.
However, futures trader Dom stressed that while $2.10 has been held for several months, a move towards the mid-$2.40 range would only result in a meaningful market change on the daily chart. The analyst said that strong price action is likely to begin if the altcoin gains acceptance well above the $2.40 level.
Coincidentally, XRP’s rally last week stalled just below the $2.40 price point on January 6th. The pullback followed more than $100 million in net sales of whales from January 4th to January 7th. Whale exodus is still increasing, but we will need to see a change in behavior if XRP retests the $2.40 level.
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