XRP climbed
25% in the first week of January, reaching approximately $2.40 on Tuesday
before pulling back to test key support levels today (Wednesday), 7 January
2026. The token outperformed Bitcoin, which gained 6%, and Ethereum, which rose
10% over the same period.
CNBC’s
Power Lunch host Brian Sullivan noted that “the hottest crypto trade of
the year is not Bitcoin, it is not Ethereum, it is XRP.” The altcoin has now
established itself as the third-largest cryptocurrency by market
capitalization.
Why is XRP going up today, and how high could its
price go in 2026? I answer these questions and provide a technical analysis of
the XRP/USDT chart in this article.
XRP Price Today. ETF
Demand Diverges from Spot Market
Four spot
XRP exchange-traded funds drew nearly $100 million in the first days of 2026,
with cumulative inflows now sitting at $1.37 billion since launch. The products
have yet to record a single day of net outflows since debuting in late 2025.
CNBC’s
Mackenzie Sigalos pointed out an unusual pattern in the flow data. “During
the doldrums of Q4, you actually saw a lot of people piling into those XRP
ETFs, which is the exact opposite of what happens with the spot Bitcoin and
Ether ETFs, where people really move in tandem with the price of the
coin,” she said during the broadcast.
WATCH: CNBC SAYS “THE HOTTEST CRYPTO TRADE OF THE YEAR IS NOT BITCOIN, IT IS NOT ETHER, IT IS $XRP.” pic.twitter.com/moYcx3OtG0
— The Wolf Of All Streets (@scottmelker) January 6, 2026
Investors
appeared to treat XRP as “a less crowded trade” compared to Bitcoin
or Ethereum, buying during Q4 2025 price weakness and positioning for
percentage gains that materialized in early January. On Dec. 31, XRP ETFs
recorded $5.58 million in net inflows while Bitcoin and Ethereum ETFs saw
outflows of $357.7 million and $224.8 million, respectively.
Recently, the popular retail CFD broker Interactive Brokers added XRP to its trading offering, alongside Solana, Cardano, and Dogecoin.
XRP’s Technical Picture
Shows Mixed Signals
According
to my technical analysis, XRP tested its 200-day exponential moving average
twice this week before falling back below $2.30 on Wednesday. The token briefly
traded above $2.40 during Tuesday’s
session but closed down nearly 2% at $2.30 as gains were erased before the
daily close.
On
Wednesday, Jan. 7, XRP declined an additional 2.5% to test the 2.24 area. That level represents the upper boundary
of a consolidation range that held from mid-October through November. A
sustained break below the 200 EMA would signal a return to sideways price
action within that earlier range.
Chart
analyst “The Great Mattsby” noted that the XRP/BTC ratio is
approaching a breakout above the monthly Ichimoku cloud for the first time
since 2018, which historically signals potential outperformance against
Bitcoin. However, spot price action remains sensitive to liquidity pockets and
stop-driven moves despite the improving relative strength setup.
Bullish engagement is coming back. Been a while since I had a crypto post get this much attentionhttps://t.co/8B97CJv3Bt
— The Great Mattsby (@matthughes13) January 6, 2026
As outlined
in my previous
analysis, key
support zones sit at $1.91 to $1.80, corresponding to late 2025 lows and
mid-2025 levels, with deeper support at $1.25. On the upside, resistance
appears near $3.00, followed by September peaks around $3.20 and last year’s
July highs above 3.60
Why XRP Price Is Surging?
Exchange Balances Hit
Multi-Year Lows
XRP
reserves on Binance dropped to their lowest levels in two years, according to
CryptoQuant data. High exchange balances typically indicate preparation for
selling, while declining reserves suggest tokens are moving to private wallets
for longer-term holding.
Network
activity also picked up. XRP Ledger transactions increased more than 50% over
the past two weeks, nearing 1 million daily transactions for the first time
since 2022. The increase reflects growing usage in cross-border payment
settlements and decentralized exchange activity.
Japan Partnerships Add
Institutional Layer
Ripple
announced collaborations with Mizuho Bank, SMBC Nikko, and Securitize Japan to
accelerate XRP Ledger adoption across Japan’s financial infrastructure. Mizuho
Bank brings institutional scale to cross-border payments and liquidity
management use cases, while SMBC Nikko, the investment banking arm of Sumitomo
Mitsui Financial Group, connects blockchain infrastructure with capital markets
expertise.
Securitize
Japan adds a tokenization capability, enabling the issuance and management of
regulated digital securities on the XRP Ledger. The partnerships position Japan
as a cornerstone of Ripple’s expansion across Asia.
In
December, Ripple received conditional approval from the U.S. Office of the
Comptroller of the Currency to charter Ripple National Trust Bank. The approval
follows passage of the GENIUS Act, which President Trump signed in July 2025 to
establish federal stablecoin regulations.
Ripple
President Monica Long told Bloomberg on Tuesday that the company’s November
fundraise at a $40 billion valuation was “very positive and favorable for
Ripple,” but there are no immediate plans for an initial public offering.
XRP Price Prediction: How
High Will XRP Go in 2026?
Standard
Chartered remains the most bullish major institution on XRP, with Geoffrey
Kendrick projecting the token could reach $8.00 by the end of 2026. This
represents a potential 247% increase from current levels and assumes ETF
inflows reach $10 billion throughout the year.
Kendrick’s
methodology centers on supply dynamics. If XRP ETFs maintain their current pace
and attract $10 billion in total inflows by late 2026, this capital
would need to purchase approximately 4–5 billion tokens at average
prices around $2.20. Combined with the existing 45% decline in
exchange balances, from 3.95 billion to 2.6 billion tokens, this
would create substantial supply-side pressure.
As detailed
in
my earlier XRP price prediction analysis, the path to $8.00 faces
several hurdles. Technical analysis suggests XRP may need to test support near $1.25
before establishing a foundation for sustained gains. Consensus forecasts
across multiple platforms show a range of $2.71 to $8.60 for
2026, with an average prediction around $3.90.
Scenarios for XRP in 2026:
- Conservative case ($3.00): Modest ETF success with
limited utility gains beyond current adoption - Base case ($3.90–$5.12): Steady ETF inflows and
moderate cross-border payment growth - Bullish case ($8.00): $10 billion in ETF
inflows with institutional support and regulatory clarity
Options-based
analysis from Jeff Anderson, Head of Asia at STS Digital, provides
market-implied probabilities rather than directional forecasts. XRP shows a 25%
probability of finishing above $2.40 and a 10% probability of
exceeding $3.90 by Dec. 31, 2026, according to current volatility
and skew data.
XRP Price Analysis, FAQ
How high can XRP
realistically go?
Short-term
technical levels point to resistance near $3.00, with further upside
potential toward $3.20 and $3.60 if momentum sustains.
Longer-term forecasts from analysts range widely, from conservative targets
around $2.60 to bullish scenarios reaching $8.00 or higher,
depending on ETF adoption rates and institutional demand patterns.
Will XRP reach $10?
Reaching $10
would require sustained institutional capital inflows and significant expansion
of real-world payment adoption beyond current levels. Some analysts have
projected potential for double-digit prices contingent on multi-billion-dollar
annual ETF inflows and cross-border payment integration at scale. However, such
scenarios depend on variables including regulatory clarity, macroeconomic
conditions, and broader crypto market sentiment that remain difficult to
forecast.
What is the XRP price
prediction for 2026?
Price
forecasts for 2026 vary widely among analysts. Conservative models project
average prices between $2.30 and $2.50, with potential peaks near
$2.60. More optimistic scenarios cite continued ETF demand and
institutional adoption as drivers for targets between $3.00 and $8.00.
AI-based predictions show similar divergence, with average estimates around $1.92
and upper-bound scenarios above $2.00.
Why is XRP going up today?
XRP’s early
January gains reflect a combination of continuous ETF inflows, declining
exchange reserves, and increased network transaction activity. Investors who
bought during Q4 2025 weakness positioned for outperformance as
less-crowded positioning relative to Bitcoin and Ethereum played out.
Partnerships with Japanese financial institutions and federal approval for
Ripple’s trust bank charter have added institutional credibility.
Why is XRP getting so much
hype?
Media
attention increased after CNBC labeled XRP “the hottest crypto trade of 2026”
based on its 25% first-week performance. The token’s ETF products have
attracted $1.37 billion in cumulative inflows without recording a single
outflow day, a pattern that diverges from Bitcoin and Ethereum ETF flows.
Social sentiment indicators show bullish positioning from both retail and
institutional accounts, while on-chain metrics, including network transactions
and declining exchange balances, signal growing usage.
This article was written by Damian Chmiel at www.financemagnates.com.
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