PEPE and XRP Rally Amid ETF Inflows and Market Recovery

Generated by AI AgentCoinSageReviewed byAInvest News Editorial Team
Tuesday, Jan 6, 2026 3:34 pm ET1min read
Aime RobotAime Summary

-

surged to $2.40 driven by SEC case dismissal and $1.24B ETF inflows, while PEPE rallied 84% from December lows via social media hype and derivatives activity.

- Institutional adoption and Ripple's ecosystem expansion support XRP's trajectory, contrasting PEPE's whale-controlled supply and $218M crowded long positions risking liquidation cascades.

- Analysts warn PEPE faces distribution risks with 1.88T tokens spent, while XRP's $8 price target depends on sustained ETF demand amid elevated spent coin activity and macroeconomic uncertainties.

XRP surged 20% to $2.40 amid regulatory tailwinds and ETF momentum

.

PEPE rallied 84% from December lows fueled by social hype and derivatives activity

.

Crypto market recovery shows ETF inflows hitting $1.24B for

products .

Analysts warn

faces whale selling and liquidation risks despite gains .

XRP and PEPE led January's crypto rebound as investors rotated into risk assets. XRP climbed to $2.40 following regulatory breakthroughs and institutional adoption

.

Meanwhile, PEPE's 84% rally from December lows spotlighted

volatility alongside and .

Both assets reflect divergent drivers as tax-related selling faded and ETF flows resurged

.

Market sentiment lifted as

neared $94,000 with broad-based altcoin participation .

What Catalyzed XRP and PEPE's 2026 Price Surges?

XRP's move higher followed SEC dismissal of its long-running case in August 2025, affirming its non-security status

.

Institutional inflows poured into XRP ETFs, accumulating $1.24B in assets while exchange balances dropped from 4B to under 1.5B tokens

.

Retail enthusiasm spiked after Ripple's former CTO humorously credited his retirement for the rally

.

PEPE's jump coincided with social media hype around a $69B valuation prediction and memecoin rotation

.

Derivatives activity exploded with PEPE's open interest hitting $446.5M and liquidations fueling momentum

.

Broader market conditions improved as tax-loss harvesting subsided and Bitcoin ETF inflows exceeded $1B

.

Can Regulatory Clarity Sustain XRP's Trajectory Toward $8?

Standard Chartered projects a 330% XRP surge to $8 by 2026 if ETF inflows persist

.

Whale accumulation signals confidence with 120M XRP scooped up pre-ETF announcements

.

Technical resistance looms near $1.98-$2.00 where breaks could accelerate gains

.

Ripple's expanding ecosystem provides utility tailwinds through custody and stablecoin initiatives

.

Yet ETF demand must offset distribution risks as spent coins activity remains elevated

.

Macroeconomic headwinds or regulatory shifts could derail projections despite current momentum

.

Is PEPE's Memecoin Rally Built on Stable Foundations?

Top wallets control substantial PEPE supply enabling potential price manipulation

.

Whale selling distributed $20M in tokens recently despite the rally

.

Derivatives create systemic risks with $218M in crowded long positions facing liquidation cascades

.

Coin

metrics show aggressive distribution with spent tokens jumping from 419B to 1.88T PEPE .

Technical indicators suggest overbought conditions as memecoin rallies historically reverse quickly

.

Unlike utility tokens, PEPE lacks fundamental buffers against sentiment shifts

.

Investor strategies should weigh XRP's institutional tailwinds against PEPE's volatility risks

.

Market structure leans constructive but shallow liquidity amplifies reversal dangers

.