XRP rose 12% to hit $2.42 on January 6, its highest price since mid-November 2025, before hovering around its current high of $2.35.
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The spike coincided with sturdy capital inflows into XRP-focused ETFs, technical breakout patterns, and a keen squeeze on brief positions. Together, these aspects led to one of the most significant gains in the cryptocurrency market recovery in early 2026.
XRP's price trends to the upside on the daily chart. Source: XRPUSD on Tradingview
XRP ETF proceeds and institutional interest yields
The Spot XRP ETFs recorded net inflows of $48 million on January 5 and 6, the largest daily inflow since their launch in November 2024.
Over the past eight weeks, these ETFs have seen steady inflows of approximately $1.23 billion, reflecting growing institutional appetite for XRP exposure. Increased buying pressure from these funds helps absorb selling pressure and reduces available supply on exchanges.
Vincent Liu, Chief Investment Officer at Kronos’ researchnoted that the inflow of ETFs combined with XRP breaking key resistance levels on high volumes has increased investor risk appetite.
Institutional interest is underpinned by regulatory clarity following Ripple’s settlement with the U.S. Securities and Exchange Commission (SEC) in 2025, which removed a major hurdle to adoption.
Technical breakouts and brief squeezes accelerate price movement
Technical analysts point to a breakout from the falling wedge pattern, with XRP maintaining levels above its 50-day moving average, which is a positive indicator for momentum traders.
As prices surged, more than $250 million in brief positions were liquidated within an hour, adding fuel to the rally by forcing brief sellers to cover their bets.
Renowned trader John Bollingerthe inventor of Bollinger Bands, commented that XRP follows a similar upward trend as Bitcoin and Ethereum, but with slightly weaker dynamics.
Nevertheless, he suggested that the price of XRP could follow Bitcoin’s uptrend, with analysts predicting a potential target near $3.50 if current support levels hold.
Broader market context and future prospects
The XRP rally comes in the context of a broader trend recovery on the cryptocurrency marketwith Bitcoin and Ethereum rising 7.4% and 9.3% respectively over the past week. On-chain data shows a decline in XRP balances on centralized exchanges, suggesting reduced selling pressure.
Institutional support continues to grow, with PwC recently endorsing Ripple as a major player in blockchain-based financial services. Major banks such as Standard Chartered forecast that XRP prices will reach $8 by the end of 2026, based on Ripple’s growing integration with cross-border payments and settlement solutions.
Related reading: John Bollinger: Bitcoin BB Squeeze Breakout Hits $107,000 Target
As market sentiment improves and regulatory uncertainty decreases, 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 zones around $2.30 and potentially push towards higher price targets.
Cover image from ChatGPT, XRPUSD chart on Tradingview
