XRP Stays Above $2, but Analysts Seek Clearer Signals

While XRP remains above the $2 mark, analysts caution that this does not confirm a definitive bullish shift just yet. They believe stronger technical validation could emerge at higher price levels.

Key Takeaways:

• XRP recently regained its 50-day moving average, signaling early hints of a potential trend reversal.

• Institutional investments in XRP reached a record high last week, contrasting sharply with the overall market which faced significant outflows during that time.

• On-chain volume data indicates that XRP’s rise above $2 is backed by stable participation from traders, rather than speculative hype.

Institutional Investments Bolster Price Stability

At the start of 2026, XRP regained a solid position above its 50-day simple moving average during the first weekend of January. This movement aligns with a classic downtrend retest, which could open the path to higher prices if buying momentum continues. However, so far, the trend appears more stable than aggressively upward-moving.

The stability is further supported by the involvement of institutional investors. Interestingly, while the broader digital asset market saw outflows of around $454 million—the worst weekly performance since mid-2023—XRP’s price actually moved contrary to this trend.

Data from CoinShares indicates that weekly inflows into XRP amounted to $45 million, marking an increase of over 400% compared to the previous week, which is pretty stark considering the market’s overall outflows.

This discrepancy suggests that XRP’s ability to stay above $2 is not simply a product of market sentiment, especially with tightening liquidity conditions elsewhere.

Volume Metrics and Market Sentiment Shape Price Range

Insights from CryptoQuant offer additional detail. Binance’s Volume Z-score is currently around 0.44, indicating that trading volume is slightly above the 30-day average but remains in a neutral zone. This suggests that the uptick in XRP’s price is likely based more on balanced trading activity than speculative momentum, typical of accumulation phases.

Market analyst Credible Crypto observes that once the “triple tap” formation at the top of the range is finalized, two scenarios might unfold: a pullback towards $1.77 in a larger upward trend or a base around $2 that continues to show bullish characteristics. Most analysts seem to favor an upward trajectory, aiming for higher untouched levels close to $3.

However, futures trader Dom points out that while XRP has held the $2.10 level for several months, a significant market shift might only occur if it approaches the mid-$2.40 range. Stronger price movements may materialize if XRP can achieve acceptance well above the $2.40 threshold.

Coincidentally, XRP’s rally recently hit a pause just below the $2.40 mark on January 6. This pause followed over $100 million in net sales by whales between January 4 and January 7. The ongoing whale exodus points to the need for a behavioral shift should XRP attempt a retest of the $2.40 price level.