XRP Rallies on ETF Inflows and Tightening Supply

• XRP surged over 11% to nearly $2.40 as spot ETFs attracted $48 million in daily inflows according to Yahoo Finance.
• Exchange-held XRP supply has dropped to multi-year lows, reducing selling pressure according to Yahoo Finance.
• Technical indicators show a potential "Golden Cross" forming, signaling bullish momentum according to Yahoo Finance.
• U.S. spot XRP ETFs have accumulated over $1.18 billion in net inflows since their November 2025 launch according to Investing.com.
• Regulatory clarity following Ripple's settlement with the SEC has boosted institutional confidence according to Yahoo Finance.

XRP has broken above the $2.00 psychological level, rallying to its highest point since November 2025. The cryptocurrency's recent jump is fueled by strong ETF inflows and reduced token availability on exchanges. These dynamics create conditions where modest demand can trigger sharp price movements. Market participants see this as a pivotal moment for the asset.

Why Is XRP Surging?

XRP's climb stems primarily from structural shifts in supply and demand. Exchange-held tokens plunged 60% to 1.6 billion in 2025, the lowest level in eight years according to AInvest. This scarcity amplifies price impacts from ETF inflows, which totaled $48 million on January 5-6 alone

according to Yahoo Finance. Regulatory progress also contributed significantly. Ripple's $125 million SEC settlement in 2025 removed legal uncertainty, enabling ETF launches and institutional participation according to Yahoo Finance. The combination creates favorable momentum for holders.

Reduced selling pressure allows modest buying activity to drive outsized gains. Only 24 million XRP ($51 million) moved to exchanges during the recent 16% rally, indicating limited profit-taking according to AOL. Meanwhile, ETF inflows absorb nearly 1% of circulating supply monthly according to Investing.com. This imbalance between constrained supply and institutional accumulation supports higher valuations. Market structure shifts now favor bulls.

What Technical Indicators Support the Rally?

XRP shows bullish technical signals across multiple timeframes. The 50-day moving average approaches a "Golden Cross" above the 200-day average, a pattern last seen in November 2024 according to Yahoo Finance. Such crosses often precede extended upward trends. Price consolidation above $2.00 confirms strong support, with key resistance at $2.30 according to Yahoo Finance. Holding these levels could validate further gains.

On-chain activity reinforces the technical case. The XRP Ledger nears 1 million daily transactions, matching 2022's peak utility according to AInvest. Derivatives markets show balanced aggression with taker buy/sell ratios at 0.99 according to Investing.com. Money Flow Index readings indicate robust volume-backed demand according to AOL. These metrics suggest holders anticipate higher prices rather than preparing to sell. Technical alignment supports continued upside potential.

Can Institutional Demand Sustain the Momentum?

Institutions drive XRP's current trajectory through relentless ETF accumulation. U.S. spot products absorbed $1.18 billion in just 50 days since their November 2025 debut according to Investing.com. This establishes ETFs as structural buyers, particularly during pullbacks according to CCN. However, retail selling created a disconnect between flows and price action earlier in 2025 according to AOL. Sustained institutional participation must overcome this divergence.

Analysts project ambitious targets if inflows persist. Standard Chartered forecasts $8 by end-2026, while technical models suggest $33-$100 longer-term according to FXEmpire. The January 15 Senate vote on crypto market structure legislation could further influence sentiment according to FXEmpire. Yet the rally remains vulnerable to demand fluctuations or macroeconomic shifts. ETF flow consistency will determine whether XRP transitions from speculative trade to utility-driven investment according to AInvest.