XRP Price Rises 15% in Early 2026 Amid ETF Inflows and Legal Resolution

XRP surged nearly 15% in the first five days of 2026, breaking above key psychological levels and showing signs of a broader market shift. The token, currently trading at around $2.16, has rebounded from its late-2025 low of $1.58, fueled by renewed institutional interest and growing ETF inflows. This move follows the resolution of Ripple's long-running legal battle with the SEC in August 2025 and the subsequent launch of spot XRP ETFs.

The price action reflects a shift in market dynamics. After struggling to maintain levels above $2, XRP has gained strength following the introduction of ETFs that have drawn over $1.14 billion in inflows since their November 2025 launch. These products have absorbed approximately 1% of the circulating supply, tightening liquidity and increasing sensitivity to demand. Exchange-held balances are now at multi-year lows, amplifying the impact of inflows.

Market structure has evolved with a breakout from a descending channel and retesting of the $2.00 psychological level. . Technical indicators, such as the RSI, suggest strengthening momentum, but overbought conditions may lead to short-term consolidation.

Why Did This Happen?

The recent surge in XRP price is largely attributed to the launch of spot XRP ETFs. These products attracted significant capital flows, particularly in early 2026, with some funds experiencing inflows exceeding $13 million in a single day. The presence of ETFs has transformed the liquidity profile of XRP, making it more attractive to institutional investors and reducing the risk premium associated with the token.

Additionally, the resolution of Ripple's legal dispute with the SEC in August 2025 removed a major regulatory overhang. This allowed for clearer classification of XRP as a digital currency rather than a security, opening the door for broader adoption and ETF approval. The legal clarity has also led to a conditional approval for Ripple's U.S. banking license, potentially expanding its utility in cross-border payments and FX bridging.

How Did Markets Respond?

XRP's price action has drawn attention from analysts and traders alike. The token's ability to hold above $2.00, a key support zone, has signaled a shift in market sentiment. Technical analysis highlights a falling wedge breakout, suggesting a potential continuation of the upward trend toward $2.60–$2.70. The 20-day and 50-day EMAs are now within reach, with the 200-day EMA at $2.35 acting as the next resistance level.

On-chain data also supports a bullish narrative. The XRP Ledger has seen a rebound in daily transactions, reaching roughly 1 million as of early 2026. This increase in network activity aligns with the price rally and suggests growing utility for the asset.

Despite this, the broader crypto market remains cautious. While XRP outperformed Bitcoin and Ethereum by approximately 1.8 percentage points during its breakout, the overall market still faces macro risks such as liquidity tightening or regulatory uncertainty. However, XRP's ETF-driven demand and legal clarity position it as a potential leader in the next phase of crypto adoption .

What Are Analysts Watching Next?

Analysts are closely monitoring key resistance and support levels. The immediate resistance sits at $2.15–$2.30, with a clean breakout expected to trigger a test of the $2.40–$2.50 range. If XRP can consolidate above this level and maintain a daily close above the 21-period EMA, the path to $3.10–$3.30 becomes viable .

On the downside, the $1.97 level is critical. A break below this would shift the market into defensive mode, with further support expected at $1.75 and $1.50. Institutional observers, including Standard Chartered and Ripple's CEO Brad Garlinghouse, have projected a potential price of $8 by the end of 2026 .

ETF inflows remain a key driver. Continued net creations in XRP ETFs, particularly from major asset managers like Franklin Templeton and Fidelity, will be crucial for maintaining upward momentum. These flows absorb supply, reduce volatility, and support higher price levels .

Finally, on-chain metrics such as exchange balances and daily transactions will provide insight into the token's utility and demand. If XRP continues to show growth in real-world usage while maintaining ETF-driven inflows, it could solidify its position as a leading digital asset. The market will closely watch whether this combination of factors leads to sustained price appreciation or another correction.