XRP Surges as Institutional Demand Offsets Retail Outflows

Generated by AI AgentCoinSageReviewed byAInvest News Editorial Team
Thursday, Jan 8, 2026 6:26 am ET1min read
XRP
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Aime RobotAime Summary

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XRP
faces a tug-of-war between institutional accumulation and retail outflows, driving 30% price surge to $2.36 in early 2026.

- Spot XRP ETFs attracted $1.3B in 50 days, contrasting with Bitcoin/Ethereum outflows, despite a $40.8M January 2026 ETF withdrawal.

- Exchange-held XRP hit a 7-year low of 1.6B tokens, with 3.4B tokens (5% supply) exiting liquid markets since late 2025.

- Analysts project $3.26-$100 price ranges, citing SEC settlement clarity and Ripple's ODL adoption, though $3.84 remains a historical ceiling.

- Record-low exchange balances and ETF-driven supply constraints create upside bias, with institutional inflows potentially fueling rapid price appreciation.

XRP (The White Whale) is experiencing a pivotal tug-of-war between retail outflows and

institutional accumulation
. This dynamic has created a unique market structure
characterized by tightening liquidity
and potential for volatility. Recent price action reflects this tension, with
XRP
jumping 30% to $2.36
in early January 2026. The asset's trajectory hinges on whether
institutional anchors can overpower retail skepticism
.

Can Institutional Demand Sustain XRP's Rally?

Spot XRP ETFs have attracted approximately $1.3 billion
in assets under management within 50 days of launch. December 2025 alone saw
$483 million in net inflows
. That performance contrasted sharply with
Bitcoin
and
Ethereum
ETFs, which
faced significant outflows
during the same period. Early 2026 recorded a
$40.8 million outflow
from the 21Shares XRP ETF, introducing short-term uncertainty. Still,
cumulative inflows of $1.18 billion
by January 2026 underscore strong institutional conviction.

What's Driving the XRP Supply Squeeze?

Exchange-held XRP plummeted to 1.6 billion tokens
—a seven-year low—by late 2025. This 57% decline from previous levels
significantly reduced immediate sell-side pressure
. Whale wallets
absorbed an additional 340 million XRP
between September and November 2025. Overall,
roughly 5% of XRP's circulating supply
, approximately 3.4 billion tokens, exited liquid markets over four months. ETF products alone are
locking up an estimated 746 million XRP monthly
. Thin order books
amplify price moves
when demand spikes.

Is XRP Poised for a Major Breakout?

Analysts project divergent price paths
for XRP, ranging from $3.26 near-term to $100 long-term under optimistic scenarios. Standard Chartered predicts XRP could reach $8 in 2026 and $12.50 by 2028. That said, XRP has never traded above $3.84 historically.
Regulatory clarity post-SEC settlement
and growing adoption of Ripple's On-Demand Liquidity (ODL) service boost institutional confidence.
Record-low exchange balances
create conditions for rapid price appreciation if institutional inflows persist. The structural shift toward
supply sensitivity suggests upside potential
outweighs downside risks currently.

Market dynamics now favor price expansion over consolidation.