XRP Price Stalls After Explosive Run, Leaving Traders at a Technical Crossroads in 2026

XRP’s price gained about 18.5% in the first five days of 2026, reaching above $2.16 as chart breakouts and ETF inflows signaled a bullish trend. The gains mirrored broader crypto market optimism, with Bitcoin and Ethereum also seeing year-to-date gains. Traders are now closely watching whether XRP can consolidate its recent momentum or face a potential correction.

WisdomTree, a major asset manager, withdrew its S-1 registration for a spot XRP ETF on January 6, 2026, citing its decision to not proceed at this time. The move coincided with a short-term price dip for XRP, which fell nearly 5% in the aftermath. Despite the setback, XRP ETFs continued to attract strong inflows, with over $1.25 billion in total inflows recorded in early 2026.

Other major XRP ETF applications from Grayscale, 21Shares, Bitwise, and Franklin Templeton remain pending with the SEC. Meanwhile, Franklin Templeton’s XRPZ ETF alone attracted $7.35 million in inflows on January 6, signaling ongoing demand for the token.

Why Did This Happen?

WisdomTree’s withdrawal has raised speculation about potential strategic market moves, including anticipation of large institutional players like BlackRock launching their own XRP ETFs. Some market observers suggest WisdomTree’s move could be a "Clearing the Deck" strategy, where smaller firms step back to avoid competition from larger players.

The firm filed its S-1 registration in December 2024, seeking to create a fund tracking XRP directly. However, it requested withdrawal under SEC's Rule 477, which allows firms to rescind filings if they decide not to proceed. The move is notable as it reflects broader uncertainty around the timing and regulatory landscape for XRP-related investment products.

How Did Markets Respond?

XRP’s price reaction was immediate, with the token dropping to around $2.20 following WisdomTree’s announcement. However, the price quickly found support near $2.05–$2.10, a key technical level. Analysts noted that as long as XRP stays above this range, the bullish trend remains intact according to analysis.

Institutional demand for XRP ETFs remains robust, with Franklin Templeton, Bitwise, and Canary Capital leading inflows. The total net assets of XRP ETFs have reached approximately $1.62 billion, indicating sustained investor interest despite short-term volatility as reported.

What Are Analysts Watching Next?

Technical indicators show XRP breaking out of a falling wedge pattern, a classic bullish reversal formation. If the price continues to clear key resistance levels, including the 200-day EMA near $2.35, the token could target $2.60–$2.70 in the coming months.

Analysts also note that XRP’s Wyckoff reaccumulation pattern is nearing a key inflection point. The token has been consolidating between $1.77 and $1.95, with a brief dip below $1.70 in late 2025 signaling seller exhaustion. A sustained move above $2.10 could unlock further upside potential toward $7–$8.

Ripple’s broader developments, including the acquisition of Solvexia to improve financial automation services and the launch of spot prime brokerage for institutional clients, are also being monitored according to reports. These moves reflect a broader strategy to enhance XRP’s utility and adoption.

XRP’s recent performance has outpaced Bitcoin and Ethereum, which have traded largely flat in early 2026. Analysts attribute this to XRP’s unique use case in cross-border payments and a perceived lower valuation base compared to the market leaders. However, challenges remain around adoption of blockchain-based financial solutions due to regulatory and interoperability issues.