China threw $69 billion at its financial system. XRP traders are paying attention.
The People’s Bank of China announced a 500 billion yuan liquidity injection this week. Standard procedure before Lunar New Year, sure. But crypto markets don’t care about the reason. They care about the money.
XRP sits at $2.06 at the time of writing this article. It’s been stuck in this range for weeks. The question everyone’s asking is whether fresh Chinese capital can push it past $3.
The China Connection Actually Matters
Chinese liquidity events tend to leak into crypto. Not all of it, obviously. But enough to move prices.
Look at what happened in March 2023. Similar injection, Bitcoin jumped 15% in ten days. XRP followed with bigger swings because that’s what it does. Lower market cap means more volatility both ways.
Asian exchanges are already showing activity. Upbit in Korea reported 23% higher XRP volume this week. Binance’s regional desks see the same pattern. When Chinese money wants to move, it finds a way.
The capital controls make this interesting. Once yuan converts to crypto, it crosses borders freely. That’s attractive when your local stock market is going nowhere.
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What the Charts Actually Show
An ascending triangle is forming on XRP’s daily chart. Traders love these patterns because they usually break upward. The price keeps making higher lows while bumping against the same resistance.
That resistance sits at $2.80. Get past that, and $3 becomes the next stop. Simple as that.
The moving averages just did something noteworthy. The 50-day crossed above the 200-day three sessions ago. Technical analysts call this a golden cross. Fancy name for what’s basically a momentum signal.
Volume tells its own story. Daily trading sits around $2.8 billion. That’s decent but not spectacular. For a real breakout, you want to see $4 billion plus. Without volume behind it, rallies don’t stick.
Big Wallets Are Buying
On-chain data shows accumulation happening. Wallets holding 1 million to 10 million XRP added 180 million tokens in two weeks. These aren’t retail traders panic-buying. This is calculated positioning.
Large holders now control about 12% of the circulating supply. That’s up from 8% last year. The shift happened quietly while everyone was focused on price action.
Exchange outflows confirm the pattern. Tokens moving off exchanges usually mean longer-term holding. People don’t withdraw to hardware wallets for quick flips.
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Ripple’s Legal Drama Is Over
The SEC settlement changed everything. For three years, institutional money sat out because of regulatory uncertainty. That excuse is gone now.
Asian funds have been adding XRP this quarter. The names stay private but the flows show up in the data. Institutional buying looks different from retail. Larger orders, consistent timing, less emotion.
This matters more than people realize. Retail traders move fast and panic easy. Institutions provide a floor. They don’t sell because the chart looks scary for a day.
The Bears Have Arguments Too
Nothing’s guaranteed here. China’s stimulus could flop. Their economy has real structural problems. Throwing money at it works until it doesn’t.
Bitcoin dominance is another factor. When BTC is running hard, altcoins get ignored. XRP needs Bitcoin to either stabilize or pull back slightly. Otherwise, all the liquidity flows in one direction.
The $2.00 level is critical support. Break below that, and the bullish setup falls apart. You’d probably see a quick drop to $1.75 as stop losses trigger. Technical patterns work great until they fail spectacularly.
Geopolitical stuff could blow everything up too. Trade tensions, regulatory crackdowns, exchange failures. Crypto has a million ways to surprise you on the downside.
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What Could Go Wrong
If the stars align, $2.80 gets tested within weeks. Break through that, and $3 comes into play. The combination of Chinese liquidity, technical setup, and institutional buying creates the conditions.
But conditions aren’t guarantees. Markets do whatever they want, regardless of our analysis. XRP could just as easily chop sideways for another month while everyone waits for a catalyst that never comes.
The smart play is watching that $2.80 resistance and the volume. If both cooperate, the bulls get their chance. If volume stays weak or price fails at resistance again, the setup breaks down.
Will Chinese money definitely push XRP higher?
There’s no “definitely” in markets. Historical patterns suggest liquidity injections help crypto, but correlation isn’t causation. Each cycle is different.
What price makes XRP a buy right now?
That’s personal to your risk tolerance. Some traders want confirmation above $2.80. Others are accumulating at current levels. Neither is wrong.
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How high can XRP actually go this cycle?
The all-time high was $3.84 back in 2018. Whether we see new highs depends on market conditions we can’t predict. Focus on probability, not certainty.
Should I trust on-chain data?
It’s one piece of the puzzle. Whale accumulation is bullish but doesn’t guarantee short-term price action. Use it alongside other indicators, not alone.
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Disclaimer:
Look, we’re just journalists reporting the news here, not your financial advisors. Everything you read above is for information purposes only. Crypto is wild, unpredictable, and can absolutely wreck your savings if you’re not careful. Never invest money you can’t afford to lose. Seriously, we mean it. Do your own research, talk to actual licensed financial professionals, and remember that past performance means absolutely nothing when it comes to future results. The crypto market can turn on a dime, and what’s hot today might be toast tomorrow. We’re not responsible for your investment decisions, good or bad. Trade smart, stay safe, and don’t bet the farm on anything you read on the internet, including this article.

