XRP Stalls Despite Bullish Developments and Ripple's Institutional Momentum

XRP ETF inflows have stalled after a 54-day streak, with $40.8 million pulled in a single day on Jan. 7. This reversal followed the withdrawal of WisdomTree's proposed XRP ETF, which had submitted a filing to the SEC this week to withdraw its application. At the same time, Ripple continues to expand its institutional footprint, having secured FCA approval in the UK to offer regulated payment services.

The withdrawal by WisdomTree adds to a growing trend as other firms, including CoinShares, have also pulled XRP ETF applications from the SEC. This decision by WisdomTree was described by some observers as a strategic move to 'clear the deck' ahead of potential filings from larger asset managers. Despite the stalled inflows, XRP ETFs have still drawn $1.2 billion in total inflows since their launch.

Ripple's recent regulatory achievements in the UK mark a pivotal step for its cross-border payment operations. The firm now holds an Electronic Money Institution (EMI) license and is registered with the FCA under UK anti-money laundering and counter-terrorist financing rules. This authorization enables Ripple to operate a regulated payments platform in the UK, supporting both fiat and digital asset transfers.

Why Did This Happen?

WisdomTree’s decision to withdraw its XRP ETF application was reportedly driven by strategic considerations. Some industry observers have suggested the move is related to the expectation that larger asset managers like BlackRock might soon enter the market with competing products.

Ripple, meanwhile, has continued to advance its institutional infrastructure, with recent FCA approvals reinforcing its role in regulated financial services. The UK regulator’s decision to grant EMI authorization to Ripple aligns with broader efforts to establish a structured regulatory framework for digital assets in the UK.

The company now has the ability to offer regulated payment and e-money services under FCA supervision, enabling it to deepen its relationships with financial institutions.

How Did Markets React?

The XRP price has shown mixed reactions to recent developments. After a sharp drop of nearly 6% following WisdomTree’s withdrawal, the token has stabilized around $2.09. However, the first ETF outflow erased gains from the start of 2026 and brought cumulative inflows back to $1.2 billion.

Technical analysts have identified key support levels for XRP at $2.05–$2.10, with a break below this range potentially leading to further downward pressure. Conversely, a breakout above the $2.33–$2.35 resistance zone could signal renewed bullish momentum.

Market observers also noted that XRP’s recent price action resembles patterns seen in 2017, where a period of consolidation was followed by a sharp upward movement.

What Are Analysts Watching Next?

Analysts are monitoring key technical indicators and institutional adoption trends to gauge XRP’s next move. The weekly RSI crossover has historically signaled major price increases, with similar patterns preceding 2024 and 2025’s notable surges.

Ripple’s continued regulatory progress in the UK has positioned it as a key player in the institutional adoption of XRP. The company’s ability to manage both crypto and fiat payments under a regulated framework strengthens its appeal to institutional clients.

The broader regulatory environment remains a critical factor. The UK is expected to finalize its crypto regulatory framework by 2027, with Ripple’s EMI authorization serving as a model for other firms seeking to operate in regulated markets.

Investor sentiment is mixed, with some analysts pointing to potential short-term volatility while others see longer-term bullish potential based on Ripple’s growing institutional partnerships.