XRP Gains Momentum Amid Record ETF Inflows and Liquidity Shifts

XRP exchange-traded funds have seen $64 million in net inflows over the past week, outpacing inflows for Bitcoin and Ethereum products according to reports. This trend marks a shift in capital allocation as Bitcoin and Ethereum ETFs recorded outflows totaling $782 million during the same period. XRP's inflows have pushed total net assets for spot XRP ETFs above $1.24 billion, with Franklin Templeton's ETF contributing $28.6 million as data shows.

The inflows indicate growing institutional interest in XRP as an alternative to major cryptocurrencies. Spot XRP ETFs have now recorded 30 consecutive days of net inflows, a sign of sustained demand. Roundhill Trust has also updated its XRP ETF filing to reflect a new investment strategy focusing on options linked to XRP ETFs.

Exchange balances for XRP have dropped to multi-year lows, signaling tighter liquidity and reduced selling pressure. On-chain data suggests that this shrinking supply could amplify price movements, especially if demand remains consistent. Standard Chartered has projected XRP could reach $8 by the end of 2026 if ETF inflows continue.

Why Did This Happen?

XRP ETFs have attracted a significant portion of institutional capital compared to Bitcoin and Ethereum products. Franklin Templeton, Bitwise, and other major issuers have driven the inflow momentum, with cumulative net inflows now surpassing $1.14 billion.

XRP's inflows contrast with the outflows seen in Bitcoin and Ethereum ETFs, which have lost over $700 million in a single week. Analysts suggest this reflects a broader market rotation rather than an exit from crypto. Capital is shifting toward XRP and other altcoins through regulated investment vehicles.

How Did Markets React?

XRP's price has traded within a $1.85 to $1.90 range over the past week, with technical indicators showing stabilizing momentum. The Relative Strength Index (RSI) has moved into neutral territory, while the MACD has shown compression, suggesting declining downside pressure.

Price action has also drawn attention from analysts, who point to potential breakout scenarios if XRP breaks above a descending channel. A break above current resistance could target the $3.00 to $3.60 range. On the downside, a drop below $1.80 could expose XRP to further retracements near the $1.30 to $1.50 level.

What Are Analysts Watching Next?

Crypto analysts are monitoring XRP's ability to maintain its range and confirm a breakout. CrediBULL Crypto has noted a potential lower-timeframe triple-tap pattern forming, suggesting short-term pullbacks remain favorable for accumulation.

Roundhill Trust's filing update reflects a growing interest in XRP options strategies, offering investors an alternative to direct token exposure. The fund plans to allocate at least 80% of its assets to options strategies tied to XRP ETFs, a sign of expanding investment options in the space.

Exchange balances for XRP remain at historical lows, indicating continued accumulation by institutional players. This tightening of supply could lead to more pronounced price responses once broader market conditions stabilize.

Institutional adoption has continued to gain momentum, with XRP-linked ETFs attracting steady inflows. Total net assets for XRP ETFs have now reached $1.27 billion, reflecting sustained investor interest.

What Comes Next?

XRP's market positioning appears to be strengthening, with growing institutional demand and regulatory clarity supporting longer-term adoption. If inflows continue, XRP ETFs could represent a significant portion of the token's supply, potentially reaching 3% to 5% of the total XRP stock by the end of 2026.

Market participants will be watching for confirmation of a breakout above key resistance levels. A sustained move above the $2.26–$2.30 zone could trigger a rapid rally toward $4.30 or higher, driven by overhead liquidity and potential short covering.

Regulatory developments and broader market sentiment will also play a role in XRP's trajectory. Ripple's growing role in institutional infrastructure, including custody and prime brokerage services, could further solidify XRP's position in the global financial system.

Overall, XRP's recent performance suggests a structural shift in how the asset is viewed, moving from speculation to infrastructure. As 2026 begins, the focus is shifting from anticipation to active deployment, with the groundwork already laid for potential expansion.