XRP price rocketed past $2.38, posting a 13% gain that had traders scrambling to figure out what just happened. After facing downward pressure for weeks, the token finally caught a break.
XRP price climbed from around $2.10 to $2.38 in less than 24 hours. Volume exploded. Futures markets lit up. And for the first time in a while, people actually wanted to buy instead of panic-selling.
Institutions Are Back at the Table
Spot XRP ETFs saw $46.1 million flow in on January 5. That’s the biggest single day in almost five weeks, according to SoSoValue. These funds now hold $1.65 billion in total assets.
Why does this matter? When ETF money comes in, those funds have to actually buy XRP to back their products. It’s not paper trading. Real tokens get pulled off exchanges. Supply shrinks. The XRP price responds.
The buying wasn’t just from ETFs either. Retail jumped back in. Daily volume hit $7.33 billion, up 114% from the day before. Open interest in futures contracts surged 23% to $4.71 billion. Traders who sat on the sidelines are placing bets again.
Also Read: As New XRP ETF Launches, Can XRP Break Out Against Bitcoin?
The Charts Finally Look Good
Technical traders had been watching a pattern develop for months. XRP price kept making lower highs and lower lows, trapped inside what’s called a falling wedge. These patterns usually end with a pop to the upside, but you never know exactly when.
Well, it popped. The breakout happened around $2.05 in early January. Since then, bulls have been winning battles at key levels. The 20-day moving average got reclaimed. Then the 50-day. Yesterday, the XRP price pushed through the 200-day exponential moving average, sitting at $2.35.
That last one’s important. The 200-day EMA is where a lot of institutional algorithms make decisions. Break above it, and you often get follow-through buying. Fall below it, and things get ugly fast.
Chart analysts are now pointing to $2.70 as the next stop. That’s based on measuring the height of the wedge pattern and projecting it upward from the breakout point. Getting there means another 10-15% gain from here.
Also Read: Can XRP Cross $3 Soon? As New XRP ETF Approved For NYSE Listing
Bitcoin Gave Permission
XRP price wasn’t going anywhere if Bitcoin stayed in the dumps. But BTC climbed back above $94,000 on Monday, and that green candle gave altcoins room to run.
The Fear and Greed Index also shifted. It spent December stuck in “extreme fear” territory. Now it’s back to neutral. When that index moves up, money starts rotating back into riskier assets. XRP benefits from that flow.
Some analysts think XRP might actually start beating Bitcoin soon. The XRP/BTC trading pair is setting up for what looks like a flag breakout. One analyst pointed out that the monthly Ichimoku cloud hasn’t been broken to the upside since 2018. If that happens, it would mark a major shift in how XRP performs relative to BTC.
Can This Actually Hold?
Rallies are easy. Holding gains is harder. Bulls need to defend $2.35 now. That’s the 200-day EMA that just got taken. If the XRP price falls back below it quickly, the breakout fails, and we’re back to square one.
The ETF flows are what I’m watching. Monday’s $46 million was nice, but we need to see that continue. If institutional money keeps coming in at this pace, it creates sustained pressure that can carry prices higher. But if those flows reverse or just dry up, this rally loses its fuel source.
Futures open interest going up is both good and bad. Yes, it shows conviction from leveraged traders. But it also means there’s more risk of a sudden unwinding if things turn south. One bad news headline and all those positions could get flushed out.
The next few days matter. If the XRP price can consolidate around $2.40 and then push toward $2.50, the bulls are in control. But any close below $2.25 would damage the technical setup pretty badly.
Also Read: Can Firelight’s New stXRP Staking Protocol Push XRP Price Higher?
Where Things Stand Right Now?
XRP price has the setup it needs to keep climbing. The technicals broke bullish. ETF money is flowing. Bitcoin isn’t crashing. Those are the three ingredients you need for an altcoin rally.
Whether it lasts more than a week is anyone’s guess. Crypto has a way of building excitement right before pulling the rug. But for now, the momentum belongs to the bulls. They’ve got a target at $2.70, and they’re going to try to hit it.
Why did the XRP price suddenly jump 13%?
The rally came from ETF inflows hitting $46 million on January 5, combined with a technical breakout from a multi-month pattern and increased interest in futures markets.
What’s happening with XRP ETFs?
Spot XRP ETFs are seeing strong demand from institutional investors. These products now hold $1.65 billion in assets and attracted the most money in five weeks on Monday.
Could XRP outperform Bitcoin this year?
Some technical indicators suggest yes. The XRP/BTC chart is approaching breakout levels not seen since 2018, which could signal a period of outperformance.
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