XRP is starting 2026 with renewed momentum, driven by a surge in institutional buying through exchange-traded funds. New data shows that XRP-focused ETFs have attracted tens of millions of dollars in fresh capital, pushing total assets under management to new highs and reinforcing the token’s growing role in regulated investment products. With XRP reclaiming levels above $2.40 earlier this month, many investors are reassessing their positions by calculating XRP profit after the recent rally. While short-term price fluctuations remain, institutional flows suggest confidence that current levels could serve as a foundation for further upside. XRP ETF holdings climb to $1.65 billion According to data by CoinPaper, XRP ETFs absorbed $46.1 million in net inflows, lifting total ETF-held XRP assets to $1.65 billion. The inflows coincided with a sharp price move that briefly pushed XRP above the key $2.40 psychological level. Although the price has since eased to around $2.37, the ability to reclaim and hold near that zone signals improving market confidence. Analysts note that this rally was driven primarily by ETF demand rather than short-term speculative trading, suggesting a more durable source of buying pressure. ETF inflows are widely viewed as a barometer of institutional conviction, and XRP’s latest figures place it among the most institutionally embraced digital assets outside Bitcoin and Ethereum. This growing exposure also improves liquidity, helping cushion price swings during periods of broader market volatility. Institutions position ahead of potential breakout The timing of the ETF accumulation stands out. XRP has spent recent weeks consolidating within a relatively tight range, making the influx of institutional capital at current levels particularly notable. Rather than chasing momentum, ETF buyers appear to be positioning ahead of a potential breakout. Despite pulling back slightly from $2.40, XRP has managed to stay above $2.35, a level that has attracted consistent dip-buying. This behavior supports the view that recent weakness reflects consolidation, not distribution. As ETF-held assets continue to grow, XRP’s price action may become increasingly shaped by long-term capital flows instead of short-term speculation. Technical charts turn bullish in early 2026 Technical indicators are also starting to align with the improving fundamentals. According to CoinCodex, XRP gained more than 18% in the first five days of 2026, supported by breakout patterns and steady ETF inflows. One of the most notable developments is a breakout from a falling wedge pattern on the daily chart, a formation that typically signals trend continuation. XRP cleared resistance near the $2.05–$2.10 zone and is now attempting to reclaim key moving averages, with the 200-day EMA near $2.35 acting as an important technical threshold. If the breakout holds, analysts see room for a move toward the $2.60–$2.70 range in the near term. Longer-term projections are even more ambitious, with some models pointing to targets between $7 and $8 if institutional adoption continues and supply tightens. Supply tightens as ETF demand persists Beyond price patterns, on-chain data adds to the bullish case. XRP balances on exchanges have dropped to their lowest levels since 2018, signaling reduced sell-side liquidity. At the same time, ETF inflows have remained positive for weeks, indicating that institutions are steadily absorbing available supply. This combination of falling exchange balances and sustained demand has historically preceded stronger upside moves once broader market selling pressure fades. The bottom line XRP’s recent performance highlights a shift in its market dynamics. A $46.1 million ETF inflow has pushed total ETF holdings to $1.65 billion, underscoring growing institutional conviction even as short-term volatility persists. While XRP has pulled back slightly from recent highs, capital inflows at current levels point to underlying strength. If ETF demand remains steady and technical breakouts continue to hold, XRP could be well-positioned for further gains as 2026 unfolds.
