XRP is back above $2, and increasing flows from institutional investors suggest that the altcoin’s rise has only just begun.
XRP (XRP) is holding above $2, but that move has yet to confirm a bullish move, with stronger technical confirmation expected at higher levels, according to an analyst.
Key conclusions:
-
XRP retook its 50-day moving average in early January, signaling the first signs of a trend reversal.
-
Institutional flows into XRP were the largest last week, sharply diverging from the market, which saw large outflows during the same period.
-
Onchain volume metrics suggest that XRP’s move above $2 is driven by balanced participation rather than speculative excess.
Inflows of XRP investment products support price stability
XRP began 2026 by regaining a bullish position above its 50-day simple moving average (SMA) during the first weekend of January. The move aligns with a classic downtrend retest, a structure that leads to higher prices if buyers maintain control. However, price movements so far suggest stabilization, not acceleration.
This stability seems to be strengthened by the participation of institutional investors. While the digital asset market experienced one of its worst weekly performances since mid-2023, with approximately $454 million in outflows, the price of XRP moved in the opposite direction.
CoinShares the data showed $45 million in weekly inflows into XRP, an increase of over 400% week over week, contrasting with broader market outflows.
That contrast helped XRP hold above $2 even as liquidity conditions tightened elsewhere, underscoring that its recent strength is not purely due to sentiment.
Related: SOL chart shows ‘masterpiece’ setup at $190 after key trend turns bullish
Volume data and the trader’s outlook define the range
CryptoQuant data adds additional nuances. Trading volume z-scores on Binance are hovering around 0.44, putting activity slightly above the 30-day average but firmly within a neutral range.
This suggests that the price of XRP is not driven by speculation, but by balanced activity between buyers and sellers, a condition seen during accumulation phases.
Meanwhile, market analyst CrediBULL Crypto he said that a completed “triple touch” at the high ranges leaves two options: either a pullback towards $1.77 within a larger uptrend, or a defended base around $2 where dips continue to be bought. Given the current market, the analyst favors an uptrend, targeting higher, untapped levels around $3.
However, futures trader Dom emphatically yes, although $2.10 has been holding for months, moves towards the mid-range of $2.40 could bring significant market movement on the daily chart. The analyst said that a strong price movement is likely to begin when the altcoin gains acceptance well above the $2.40 level.
Coincidentally, XRP’s rally last week stalled just below $2.40, where the price was rejected on January 6th. The withdrawal followed more than $100 million in net sales from January 4-7. While the whales ebb and flow stay elevateda change in behavior should be seen if XRP retests the $2.40 level.
Related: Ripple aims to issue EU MiCA passports with Luxembourg e-money approval
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision. Although we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph shall not be liable for any loss or damage arising from your reliance on this information.
About the Author
