XRP recorded a great gain of 18% in the initial five days of the year 2026, exceeding the threshold of $2.16 amid the strong inflows of the equity trades in the prime fund in the form of Exchange Traded Fund (ETF), and the creation of a bullish technical pattern.
Although Bitcoin is close to value at 93,841, XRP gains upward are consistent with the fact that the value of cryptocurrencies is growing by some 7.3%.
Institutional cash inflows have become more intense, stock provided by exchanges has shrunk, thus creating the circumstances under which high appreciation was predetermined.
Wedge Breakout Signals Trend Reversal
On its daily chart, XRP has violated a multi-month falling wedge setup, a traditional signal of beneficial reversal that indicates subsisting bearish impulse.
The subsequent breakout pierced through the upper trendline that was between $2.05 and $2.10 at the beginning of January and it was accompanied by a 25% higher volume than the contemporaneous average.
Currently, the price is testing the 20 days and 50 days exponential moving averages (EMAs) and aiming at the 200 days EMA at $2.35 representing the next major psychological and technical hurdle.
However, according to the most recent forecast, the price will rise by 0.8% and reach $2.41 by January 7, 2026, offering a bright future.
Squeezer Inflows Tighten Supply
In December 2025, two very different stories emerged about institutional cryptocurrency appetite. XRP ETFs were the big winners, taking in $483 million. Outperforming Bitcoin ETFs, which lost $1.09 billion, and Ethereum products lost $564 million but XRP funds continued to attract new money.
At the same time, exchange balances have been nearly at the same level as seen in 2018 and this has lowered the supply of sell-side liquidity by 15% year-to-year.
Historically, declining exchange balances combined with rising demand have been a favorable setup for price appreciation
Geoffrey Kendrick, the bank’s global head of digital assets research, recently predicted that Ripple’s native token XRP could rise from around $1.86 to as high as $8 by 2026, if adoption and institutional participation continue to grow.
Bright Outlook Ahead
The overall mood of the market has also gotten better, as solid profit growth across the technology industry and the continued regulatory dialogues that are seeking to come up with more transparent systems on the digital assets have helped.
These factors lead to a better macroeconomic environment of the cryptocurrencies. As long as the XRP stays above the support line of the technical or the support level of 2.10, it seems that the technical momentum has not been broken.
The inflows into ETFs and a general increase in market confidence may be the basis of an even higher valuation in 2026. However, shareholders should remain watchful of market volatility and regulatory trends in general which continue to be primary areas of risk.
Overall, the technical makeup of XRP and the institutional support that can be observed in it indicates that the recent upward trend can last longer, but long-term returns will depend on the macro market state and the ability of purchasing forces to continue to work.
