- Trending
- Comments
- Latest
XRP exchange-traded funds attracted $46.1 million in net inflows on Monday, their strongest day since early December, driving a 12.5% price rally to $2.38 as the cryptocurrency broke above a key technical resistance level that had capped gains since October.
The most immediate catalyst behind XRP’s rebound has been a sharp increase in demand for XRP exchange-traded funds among U.S. investors. Data from SoSoValue shows that XRP ETFs recorded $46.1 million in inflows on Monday, Jan. 5, marking their strongest single-day intake in nearly five weeks.
Higher XRP etf inflow levels typically translate into increased spot market demand, as fund issuers buy underlying XRP to match investor subscriptions. This mechanism has historically added upward pressure to price during periods of sustained inflows.
As noted in the market summary, “XRP ETF inflows hit a 5-week high on Monday,” —Markets report. That inflow resurgence has been widely viewed as a vote of confidence after weeks of subdued activity, reinforcing the narrative that institutional interest is returning.
The renewed XRP etf inflow comes at a time when broader crypto market sentiment is stabilizing, providing a supportive backdrop for risk-on positioning in high-cap altcoins.
Beyond spot ETF demand, derivatives markets are also signaling growing conviction. CoinGlass data shows that open interest in XRP futures rose 21% over the past 24 hours to $4.65 billion, aligning closely with the price increase.
“When OI and price rise together, it signals new money entering the market rather than short covering or existing positions being closed,” — CoinGlass, futures market data.
This dynamic is often interpreted as a sign that leveraged traders are opening fresh positions in anticipation of further gains, rather than simply unwinding bearish bets.
The improvement in XRP etf inflow metrics has coincided with a broader recovery in market sentiment. Bitcoin briefly rebounded above $94,000, lifting the wider crypto market, while the Crypto Fear and Greed Index moved back into neutral territory after lingering in “extreme fear” since mid-December.
Historically, XRP and other major altcoins have tended to perform better when sentiment indicators stabilize, especially when reinforced by tangible demand drivers such as XRP etf inflow growth.
From a technical standpoint, XRP has confirmed a bullish reversal on the daily chart, breaking out of a falling wedge pattern that had been in place since early October 2025. This pattern, defined by two descending and converging trendlines, is widely regarded as a classic bullish reversal structure when confirmed by a decisive breakout.
“XRP price has confirmed a bullish reversal pattern on the daily chart,” — technical analysis. The breakout suggests that selling pressure has weakened and buyers are regaining control, particularly as the move aligns with rising XRP etf inflow data.
Other indicators support this view. The 20-day simple moving average is approaching a bullish crossover with the 50-day average, while the MACD lines have turned upward, signaling strengthening momentum.
Together, these signals suggest that the current rally may have room to extend if inflows and sentiment remain supportive.
Based on the height of the falling wedge pattern and the point of breakout, analysts are watching the $2.80 level as a potential near-term target. That level sits roughly 15% above current prices and would mark a meaningful continuation of the recovery sparked by the latest XRP etf inflow surge.
While the technical and on-chain signals remain constructive, the durability of XRP’s rally will likely depend on whether XRP etf inflow momentum can be sustained in the coming sessions. A slowdown in ETF demand or a reversal in broader market sentiment could temper bullish expectations.
For now, however, the combination of rising ETF inflows, increasing futures participation, and a confirmed chart breakout has shifted the balance in favor of bulls. As long as the XRP etf inflow narrative remains intact, traders appear willing to position for further upside after months of persistent downside pressure.
