XRP reclaims $2 as fund inflows diverge from broader crypto outflows

XRP (XRP) is holding above $2, but the move has yet to confirm a decisive bullish shift, with analysts saying stronger technical validation would be needed at higher levels.

Key takeaways:

• XRP reclaimed its 50-day moving average in early January, signaling early signs of a trend reversal.
• Institutional flows into XRP were the highest last week, diverging sharply from the market, which saw heavy outflows during the same period.
• Onchain volume metrics suggest XRP’s move above $2 is driven by balanced participation rather than speculative excess.

XRP investment product inflows support price stability

XRP began 2026 by reclaiming 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 some technical analysts associate with higher prices if buyers maintain control. However, the price action so far suggests stabilization rather than acceleration.

XRP one-day chart. Source: Cointelegraph/TradingView

This stability appears reinforced by inflows into XRP-linked digital asset investment products. While the digital asset market experienced one of its worst weekly performances since mid-2023, with roughly $454 million in outflows, XRP price moved in the opposite direction.

CoinShares data showed $45 million in weekly inflows into XRP, a more than 400% increase week-on-week, which stood in contrast to broader market outflows.

This contrast has helped XRP hold above $2 even as liquidity conditions tightened elsewhere, highlighting that its recent strength is not purely sentiment driven.

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Volume data and trader outlook define the range

CryptoQuant data adds further nuance. Trading volume Z-Scores on Binance hover around 0.44, placing activity slightly above the 30-day average but firmly within a neutral range.

XRP Z-score for trading volumes on Binance. Source: CryptoQuant

This suggests XRP’s price is not being pushed by speculation, but by balanced activity between buyers and sellers, a condition sometimes observed during consolidation or accumulation phases.

Meanwhile, market analyst CrediBULL Crypto said that a completed “triple tap” at range highs leaves two paths: either a pullback toward $1.77 within a larger uptrend, or a defended base about $2 where dips continue to be bought. Given the current market, the analyst favors an uptrend, which the analyst described as a potential upside scenario, with resistance still needing to be cleared.

However, futures trader Dom emphasized that while $2.10 has held for months, moves toward the mid-$2.40 range could only deliver a meaningful market shift on the daily chart. The analyst said that strong price action likely begins once the altcoin establishes acceptance well above the $2.40 level.

XRP daily chart analysis by Dom. Source: X

Coincidentally, XRP’s rally last week stalled just below $2.40, where the price was rejected on Jan. 6. The pullback followed more than $100 million in net whale selling Jan. 4 to Jan. 7. While whale outflows remain elevated, a shift in behavior would need to be seen if XRP retests the $2.40 level.

XRP Whale flows 30-DMA. Source: CryptoQuant

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