XRP Approaches Bullish Breakout as ETF Inflows Consume Nearly 1% of Total Supply

Despite an ongoing correction, XRP is holding a key technical level and drawing renewed market attention. Inflows into ETFs linked to XRP are accelerating, with recent data showing they have absorbed nearly 1% of the total token supply within just a few weeks. This development is fueling speculation about a potential bullish breakout in 2026.

Technical Signals Point to a Potential Rebound According to analyst EGRAG CRYPTO, the Ripple-issued token is currently moving within a well-defined downward channel. He describes the ongoing activity as a “controlled correction” rather than a distribution phase. A bullish breakout, he says, depends on a close above the 21-day EMA and a break through the upper boundary of the channel, which lies near a recent resistance level. EGRAG assigns a 60% probability to an upward breakout, a 30% chance of continued sideways movement, and just a 10% risk of falling back to recent lows.

XRP Gains Strength and Surpasses Rivals Thanks to its recent gains, XRP has climbed back into the top 3 cryptocurrencies (excluding stablecoins) by market capitalization. Commentator John Squire noted a sharp, single-minute spike in global trading volume, suggesting the entry of large-scale players.

ETF Demand Bolsters Price Momentum Since mid-November, spot ETFs focused on XRP have seen substantial capital inflows. According to the latest figures, these products have soaked up nearly 1% of all circulating XRP tokens, signaling growing institutional interest. As of January 5, data shows that XRP is trading above recent support levels, with double-digit gains recorded over the previous seven days — allowing it to overtake a longtime rival in market cap rankings.

Mixed Signals: Bullish Hopes vs. Technical Barriers While on-chain indicators (e.g., CryptoOnchain) suggest selling pressure has eased, some analysts caution that a short-term pullback may still be on the table. For instance, Cheds Trading highlighted the largest four-hour volume candle in a month, viewing it as a potential sign of buyer exhaustion. Some traders are also watching out for sell walls near key resistance levels, which could slow any upward momentum.

2026 Outlook: Bullish Surge or Bearish Reversal? Experts agree that the future of XRP hinges on several major factors:

🔹 Continued institutional adoption

🔹 Ripple’s business expansion

🔹 Profit-taking and broader market sentiment Thus, 2026 could bring a breakout to new highs — or a cooling-off period if market conditions deteriorate.

#xrp , #Ripple , #etf , #altcoins , #crypto

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