XRP Jumps 8% Above $2 as Traders Bet on a Friendlier SEC in 2026

XRP rose above $2 on January 3, 2026, marking its first time above that level since mid-December. The rise followed a week of strong spot ETF inflows and growing optimism about U.S. regulatory developments. Traders are increasingly viewing XRP as a beneficiary of a more accommodating SEC framework.

Data from SoSoValue showed U.S. spot XRP ETFs added $13.59 million in inflows on January 2, pushing total inflows since launch to $1.18 billion. The steady inflow trend has improved the token's supply-demand dynamics, despite broader crypto benchmarks remaining rangebound.

The departure of SEC Commissioner Caroline Crenshaw, a vocal critic of crypto ETFs, has further bolstered market sentiment. Her exit removed a key regulatory hurdle, raising expectations that the SEC may adopt a more favorable stance toward digital assets.

Why Did This Happen?

XRP's recent price increase reflects continued institutional interest and regulatory optimism. U.S. spot XRP ETFs have seen 29 consecutive days of inflows, with no outflow days reported. This steady demand has helped XRP outperform other major cryptocurrencies in recent trading sessions.

Analysts attribute the bullish movement to a combination of factors, including the SEC's shifting regulatory tone and improved market confidence. Ripple's recent legal settlement and the approval of spot ETFs have also contributed to a more positive market outlook.

How Did Markets React?

XRP's rise came against a backdrop of mixed flows in other major crypto ETFs. While Bitcoin and Ethereum ETFs saw outflows during the same period, XRP ETFs continued to attract capital. This divergence suggests that XRP's rally is being driven more by token-specific factors than a broad market risk-on move.

The broader crypto market remains cautious. Bitcoin hovered just above $90,000, while Ethereum traded around $3,000. Both assets posted modest gains for the day, but did not see the same level of activity as XRP. This market behavior indicates XRP's performance is distinct from broader crypto trends.

What Are Analysts Watching Next?

Market participants are closely monitoring key support and resistance levels for XRP. The current price above $2 suggests that the 50-week moving average is no longer a major barrier. Analysts suggest that a sustained move above $2.45 could lead to further upside, while a drop below $1.80 could trigger a bearish trend.

Standard Chartered analysts have predicted that XRP could exceed $8 in 2026, driven by regulatory clarity and continued ETF inflows. The bank anticipates $4 billion to $8 billion in inflows into XRP ETFs throughout the year, which could create upward pressure on the token's price.

Franklin Templeton, a major asset manager, has also shown confidence in XRP by launching the Franklin XRP Trust. The fund provides institutional and retail investors with regulated exposure to the token, further supporting demand.

Looking ahead, investors will be watching for key policy developments, including the potential passage of the CLARITY Act. The legislation could provide a regulatory framework that further supports institutional adoption of XRP and other digital assets.

XRP's long-term prospects depend on several factors, including continued ETF inflows, regulatory clarity, and the token's ability to demonstrate utility. Analysts remain divided, with some predicting a potential drop below $1 due to bearish technical patterns and others forecasting a sharp move toward $10 in 2026.

As XRP continues to move above key psychological levels, traders are preparing for a potential shift in market dynamics. The combination of regulatory optimism, institutional interest, and improving fundamentals could position the token for a sustained rally in the coming months. This outlook is supported by recent market activity and institutional participation.